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Impact of European Integration on Institutional Development

Author

Listed:
  • Schönfelder, Nina

    (University of Hagen)

  • Wagner, Helmut

    (University of Hagen)

Abstract

This paper investigates institutional development induced by European integration. We estimate a dynamic panel data model wherein institutional development is measured as positive changes in the Worldwide Governance Indicators, which are explained by the status of the European countries, for example, being a member of the euro area or an EU member state or a candidate country of the European Union, and additional controls. We confirm a positive effect arising from prospective EU membership, although being an EU member state does not influence the institutional development path. For members of the euro area, there is robust evidence for institutional deterioration in one particular area, namely control of corruption.

Suggested Citation

  • Schönfelder, Nina & Wagner, Helmut, 2016. "Impact of European Integration on Institutional Development," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 31(3), pages 472-530.
    • Handle: RePEc:ris:integr:0691
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    Citations

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    Cited by:

    1. Eydam, Ulrich & Gabriadze, Irakli, 2018. "Institutional development in Transition Economies - The role of institutional experience," MPRA Paper 87395, University Library of Munich, Germany.
    2. Glawe, Linda & Wagner, Helmut, 2021. "Convergence, divergence, or multiple steady states? New evidence on the institutional development within the European Union," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 860-884.
    3. Lucke, Bernd, 2022. "Growth Effects of European Monetary Union: A Synthetic Control Approach," MPRA Paper 115373, University Library of Munich, Germany.
    4. Linda Glawe & Helmut Wagner, 2021. "Divergence Tendencies in the European Integration Process: A Danger for the Sustainability of the E(M)U?," JRFM, MDPI, vol. 14(3), pages 1-22, March.
    5. Arielle Beyaert & José García-Solanes & Laura López-Gómez, 2023. "Did the Euro Really Increase Corruption in the Eurozone? A Counterfactual Analysis," Hacienda Pública Española / Review of Public Economics, IEF, vol. 244(1), pages 3-36, March.
    6. Beyaert, Arielle & García-Solanes, José & Lopez-Gomez, Laura, 2019. "Do institutions of the euro area converge?," Economic Systems, Elsevier, vol. 43(3).

    More about this item

    Keywords

    institutional development; transition economies; European integration; euro area; panel data;
    All these keywords.

    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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