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Prospective NATO or EU Membership and Institutional Change in Transition Countries

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Author Info
Ansgar Belke ()
Ingo Bordon
Inna Melnykovska
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 NATOclearly 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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Publisher Info
Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0131.

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Length: 31 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:rwi:repape:0131

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Related research
Keywords: EU; NATO; transition economies; institutional change; governance;

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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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  1. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
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  2. Arvind Subramanian & Xavier Sala-i-Martin, 2003. "Addressing the Natural Resource Curse: An Illustration from Nigeria," IMF Working Papers 03/139, International Monetary Fund. [Downloadable!]
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  3. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July. [Downloadable!] (restricted)
    Other versions:
  4. Rainer Thiele & Peter Nunnenkamp & Axel Dreher, 2007. "Do Donors Target Aid in Line with the Millennium Development Goals? A Sector Perspective of Aid Allocation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(4), pages 596-630, December. [Downloadable!] (restricted)
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  5. Thorsten Beck & Luc Laeven, 2006. "Institution building and growth in transition economies," Journal of Economic Growth, Springer, vol. 11(2), pages 157-186, June. [Downloadable!] (restricted)
  6. Tim Haughton, 2007. "When Does the EU Make a Difference? Conditionality and the Accession Process in Central and Eastern Europe," Political Studies Review, Political Studies Association, vol. 5(2), pages 233-246. [Downloadable!] (restricted)
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  8. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-29, October.
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  10. Beck, Thorsten & Laeven, Luc, 2006. "Institution Building and Growth in Transition Economies," CEPR Discussion Papers 5718, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Maria L. Di Tommaso & Martin Raiser & Melvyn Weeks, 2007. "Home Grown or Imported? Initial Conditions, External Anchors and the Determinants of Institutional Reform in the Transition Economies," Economic Journal, Royal Economic Society, vol. 117(520), pages 858-881, 04. [Downloadable!] (restricted)
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  13. Belke, Ansgar & Spies, Julia, 2008. "Enlarging the EMU to the East: What Effects on Trade?," IZA Discussion Papers 3647, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. János Kornai, 2006. "The Great Transformation Of Central And Eastern Europe: Success And Disappointment," Politická ekonomie, University of Economics, Prague, vol. 2006(4), pages 435-466. [Downloadable!] (restricted)
  15. Paldam, Martin, 2002. "The cross-country pattern of corruption: economics, culture and the seesaw dynamics," European Journal of Political Economy, Elsevier, vol. 18(2), pages 215-240, June. [Downloadable!] (restricted)
  16. Belke, Ansgar & Gocke, Matthias & Hebler, Martin, 2005. "Institutional uncertainty and European Social Union: Impacts on job creation and destruction in the CEECs," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 345-354, April. [Downloadable!] (restricted)
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  17. Busse, Matthias & Gröning, Steffen, 2009. "Does foreign aid improve governance?," Economics Letters, Elsevier, vol. 104(2), pages 76-78, August. [Downloadable!] (restricted)
  18. Raghuram Rajan & Arvind Subramanian, 2007. "Does Aid Affect Governance?," American Economic Review, American Economic Association, vol. 97(2), pages 322-327, May. [Downloadable!]
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This page was last updated on 2009-11-17.


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