Belke, Ansgar () (University of Duisburg-Essen) Bordon, Ingo () (University of Duisburg-Essen) Melnykovska, Inna () (University of Kiel) Schweickert, Rainer () (Kiel Institute for the World Economy)
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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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
4483.
Find related papers by JEL classification: F15 - International Economics - - Trade - - - Economic Integration F20 - International Economics - - International Factor Movements and International Business - - - General F50 - International Economics - - International Relations and International Political Economy - - - General P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
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