Prospective NATO or EU Membership and Institutional Change in Transition Countries

Ansgar Belke (), Ingo Bordon (), Inna Melnykovska () and Rainer Schweickert
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Ansgar Belke: University of Duisburg-Essen
Ingo Bordon: University of Duisburg-Essen
Inna Melnykovska: University of Kiel

No 4483, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: 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.

Keywords: EU; NATO; transition economies; institutional change; governance (search for similar items in EconPapers)
JEL-codes: F15 F20 F50 P20 P30 O19 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tra
Date: 2009-10

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Working Paper: Prospective NATO or EU Membership and Institutional Change in Transition Countries (2009)
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