IMPACT OF INSTITUTIONAL QUALITY AND TECHNOLOGICAL PROGRESS ON COUNTRIES ECONOMIC DEVELOPMENT

During the last year economics literature has increasingly referred to institutions as the answers to the longstanding questions concerning how economic growth arises, what policies can be used to promote the best results in terms of economic performance and what accounts for differences in GDP levels among countries so that the analysis of the institutional framework under which any economy operates has now become an indispensable object of research. In a globalizing world economy, the cause of differences in economic growth and income inequality is explained on the basis of technological differences. The use of new technologies paves the way for the production of new cheaper goods, capital accumulation, and, in this case, increased international competitiveness of individual countries. On the one hand, this improves the quality of research institutions and, on the other, contributes to the cultural and political development of societies. Therefore, the quality of growth rates is as important as their size. This study aims to demonstrate that businesses and individuals need to use technology more efficiently, leading to cost savings and productivity gains. The main research methods used in this study are content analysis, analysis and synthesis method, intuitive and systematic approach.