Working Paper

Prospective Membership and Institutional Change in Transition Countries

Authors

  • Ansgar Belke
  • Ingo Bordon
  • Inna Melnykovska
  • Rainer Schweickert
Publication Date

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.

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Info

JEL Classification
F15, F20, F50, P20, P30, O19

Key Words

  • EU
  • governance
  • institutional change
  • NATO
  • transition economies