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Prospective NATO or EU Membership and Institutional Change in Transition Countries

  • Ansgar Belke
  • Ingo Bordon
  • Inna Melnykovska
  • Rainer Schweickert

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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File URL: http://www.diw.de/documents/publikationen/73/diw_02.c.292481.de/dp915.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 915.

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Length: 26 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwwpp:dp915
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