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Development of formal and informal institutions in the Czech Republic and other new EU Member States before the EU entry: did the EU pressure have impact?

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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 negotiations 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 the EU entry: did the EU pressure have impact?," Working Papers IES 2006/04, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2006.
    • Handle: RePEc:fau:wpaper:wp2006_04
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    File URL: http://ies.fsv.cuni.cz/default/file/download/id/4952
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    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 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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