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Working Paper

Prospective Membership and Institutional Change in Transition Countries

Kiel Working Papers, 1562
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Authors

  • Belke
  • A.
  • Bordon
  • I.
  • Melnykovska
  • I.
  • Schweickert
  • R.

Publication Date

JEL Classification

F15 F20 F50 P20 P30 O19

Key Words

EU

governance

institutional change

NATO

transition economies

This paper quantifies the impact of incentives related to potential membership on institutional change as measured by the World Bank Governance Indicators (WBGI). Based on a panel of 25 transition countries for the period from 1996 to 2008 we show that pre-accession incentives provided by EU and NATO clearly matter for institutional development. In addition, path-dependency determined by cultural norms may be overcome by economic liberalization while foreign aid seems to hamper institutional development.

Kiel Institute Expert

  • Dr. Rainer Schweickert
    Kiel Institute Researcher

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