A summary approach of the institutional components must emphasize
that we can not fail to notice some of them that could cause fluctuations in
the competitive environment and determine mechanisms in terms of
competitive potential. Such ownership or intellectual property protection is
the foundation of development and gain competition in a market economy.
On the other hand, misappropriation of public funds, bribery, mistrust in
politicians and public institutions, irregular payments made by businesses in
turn causes a negative impact on the competitive environment. Addressing
these elements in a more transparent and lucid perspective, it would certainly
lead to an increase in firms’ competitive potential and, why not, an increase
in national competitive advantage. We can not tackle this analysis without
taking into account the involvement of government action that from the point
of view of specialists can investigate issues of favoritism in decision of
government officials, in wasteful government spending and regulatory
burdens of government. Of course, transparency of government policies
reflects an important component in assessing and strengthening the
competitive environment. The latter can be directly influenced (from an
institutional perspective) both positively and negatively by the efficiency of
the legal framework in settling disputes, the efficiency of the legal
framework of regulations and laws that govern the country and the economic
A summary approach of the institutional components must emphasizethat we can not fail to notice some of them that could cause fluctuations inthe competitive environment and determine mechanisms in terms ofcompetitive potential. Such ownership or intellectual property protection isthe foundation of development and gain competition in a market economy.On the other hand, misappropriation of public funds, bribery, mistrust inpoliticians and public institutions, irregular payments made by businesses inturn causes a negative impact on the competitive environment. Addressingthese elements in a more transparent and lucid perspective, it would certainlylead to an increase in firms’ competitive potential and, why not, an increasein national competitive advantage. We can not tackle this analysis withouttaking into account the involvement of government action that from the pointof view of specialists can investigate issues of favoritism in decision ofgovernment officials, in wasteful government spending and regulatoryburdens of government. Of course, transparency of government policiesreflects an important component in assessing and strengthening thecompetitive environment. The latter can be directly influenced (from aninstitutional perspective) both positively and negatively by the efficiency ofthe legal framework in settling disputes, the efficiency of the legalframework of regulations and laws that govern the country and the economic
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