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Development of Formal and Informal Institutions in the Czech Republic and Other New EU Member States Before Their EU Entry: Did the EU Pressure Have Impact?

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  • Adam Geršl

Abstract

The paper compares the quality of the institutional framework of the Czech Republic with other new EU Member States and the EU 15 average using the World Bank data on Governance Indicators and argues that the pressure from the EU institutions during the accession negotiation period to reform the legal framework was not sufficient to improve significantly the business environment. Among factors that prevented the improvement of institutions the influence of strong interest groups, ineffective enforcement of legal rules and corruption are discussed and empirically illustrated using data on 'state capture'.

Suggested Citation

  • Adam Geršl, 2006. "Development of Formal and Informal Institutions in the Czech Republic and Other New EU Member States Before Their EU Entry: Did the EU Pressure Have Impact?," Prague Economic Papers, University of Economics, Prague, vol. 2006(1), pages 78-90.
  • Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:1:id:278:p:78-90
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    Keywords

    business environment; EU enlargement; corruption; institutions;

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

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