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Prospective NATO or EU Membership and Institutional Change in Transition Countries

  • Belke, Ansgar H.

    ()

    (University of Duisburg-Essen)

  • Bordon, Ingo

    ()

    (University of Duisburg-Essen)

  • Melnykovska, Inna

    ()

    (University of Kiel)

  • Schweickert, Rainer

    ()

    (Kiel Institute for the World Economy)

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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4483.

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Length: 29 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Economics of Transition, 2011, 19 (4), 667-692
Handle: RePEc:iza:izadps:dp4483
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