Institutional quality and bioeconomy performance in European countries: Unveiling the evidence

The bioeconomy, emerging as a beacon of sustainable development and global competitiveness, relies on renewable biological resources. This study investigates the interplay between institutional quality and bio- economy performance in 28 European countries. By employing a Fixed Effect Regression and different sensitivity analyses, we unveil a robust, positive, and statistically significant relationship between the institutional quality and the socio-economic indicator for bioeconomy. The six institutional quality pillars - political stability, control of corruption, government effectiveness, regulatory quality, rule of law, and voice and accountability - positively impact the bioeconomy in Europe. These findings underscore the pivotal role of institutions in shaping bio- economy performance, emphasizing the profound impact of political stability, regulatory standards, and anti- corruption measures. As a result, our research provides valuable insights for policymakers, highlighting the significance of enhancing institutional quality as a means to advance sustainability and stimulate economic growth through bioeconomy development.