Kiel Working Papers, Kiel Institute for World Economics
No 1562:
Prospective Membership and Institutional Change in Transition Countries
Ansgar Belke, Ingo Bordon, Inna Melnykovska and Rainer Schweickert
Abstract: 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
Keywords: EU, NATO, Transition Economies, Institutional Change, Governance; (follow links to similar papers)
JEL-Codes: F15,; F20,; F50,; P20,; P30,; O19; (follow links to similar papers)
26 pages, October 2009
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