An Examination of the Impact of Institutional Environment on Socio-Economic Development in Candidate Countries for EU Membership using Canonical Correlation Analysis

One of key determinants of national economic performance is an institutional environment that significantly impacts on socio-economic growth dynamics. The purpose of this paper is to examine the impact of institutional factors on socioeconomic development in candidate countries for EU membership (Albania, Bosnia and Herzegovina Georgia, Moldova, Montenegro, North Macedonia, Serbia, Turkey, Ukraine). It has been revealed that the role of Technologies (artifical intelligence, big data, Internet of Things, $5 G$ networks, maching learning, fuzzy-logic based approach, quantum computer methods, econometric models) in research of development of socio-economic systems marketedly grows. In this research, canonical correlation analysis have been employed and it allowed to estimate the quantitative impact of institutional determinants on socio-economic development. It has been determined that three variables characterizing institutional environment (Corruption Perceptions Index, Property Rights Index, Democracy Index) impact significantly on indicators characterizing socio-economic development (poverty index, increase in real GDP, Gini coefficient). In this paper, suggestions on how to improve the strategic orientation of the governments policies, accelerate economic growth and join to the European Union of analyzed countries are also proposed.