Governance Quality and Socioeconomic Development in the Western Balkans: A Secondary Data Analysis (2010–2023)

Abstract

This study examines the relationship between governance quality and socioeconomic development in Western Balkan countries using secondary quantitative data. Drawing on internationally recognized datasets, including the World Bank World Development Indicators (WDI) and Worldwide Governance Indicators (WGI), as well as Transparency International’s Corruption Perceptions Index (CPI), the analysis explores how institutional performance correlates with key development outcomes such as GDP per capita and unemployment rates. The study employs a comparative cross-national design covering six Western Balkan countries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. Findings indicate a consistent association between stronger governance indicators—particularly rule of law and control of corruption—and higher levels of economic development. Countries with relatively improved institutional performance also demonstrate more favorable labor market outcomes. The results support existing theoretical frameworks emphasizing the centrality of governance in development processes. Policy implications highlight the need for institutional reforms aimed at strengthening transparency, accountability, and administrative efficiency.