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Growth without development: institutional barriers to convergence in EU candidate states

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  • Dženita Å iljak

    (Institute for Advanced Studies Köszeg, Hungary)

  • Kristian L. Nielsen

    (Corvinus Institute for Advanced Studies, Hungary)

Abstract

This research analyzes the effect of institutions on economic growth in eight EU candidate transition countries, combining quantitative (β-convergence models) and qualitative (integration maturity framework) methodologies. Drawing on three sets of theories - convergence, institutional economics, and integration maturity - we analyze whether the transition countries have experienced growth without development. The research question is: Why have they lagged on their path towards EU membership? To answer this, we test the research hypothesis that institutions have not had a sufficient impact on the convergence of transition countries towards the EU. The analyzed period is 2004-2022. Countries with efficient institutions tend to experience faster economic growth. This research shows that inefficient institutions are a reason why transition countries have not seized their 'advantage of backwardness'.

Suggested Citation

  • Dženita Å iljak & Kristian L. Nielsen, 2025. "Growth without development: institutional barriers to convergence in EU candidate states," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 16, pages 13-36, June.
    • Handle: RePEc:jes:journl:y:2025:v:16(1):p:13-36
    DOI: https://doi.org/10.47743/ejes-2025-0102
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