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Abstract

Employing correlation analysis, we investigate whether rural development in the EU countries is associated with their institutional quality represented by “good” governance indicators of the World Bank (voice and accountability, political stability, government effectiveness, regulatory quality, control of corruption). Generally, our results provide empirical support for the view that better nation-state governance goes hand in hand with better performance of rural economy and show that in new member states those relationships, in many cases, are stronger than in the oldest ones. Improving government quality in new member states would help their rural areas to achieve better convergence with the EU-15.

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