Growth without development: institutional barriers to convergence in EU candidate states

Dženita ŠIljak () and Kristian L. Nielsen ()
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Dženita ŠIljak: Institute for Advanced Studies Köszeg, Hungary
Kristian L. Nielsen: Corvinus Institute for Advanced Studies, Hungary

Eastern Journal of European Studies, 2025, vol. 16(1), 13-36

Abstract: This research analyzes the effect of institutions on economic growth in eight EU candidate transition countries, combining quantitative (β-convergence models) and qualitative (integration maturity framework) methodologies. Drawing on three sets of theories - convergence, institutional economics, and integration maturity - we analyze whether the transition countries have experienced growth without development. The research question is: Why have they lagged on their path towards EU membership? To answer this, we test the research hypothesis that institutions have not had a sufficient impact on the convergence of transition countries towards the EU. The analyzed period is 2004-2022. Countries with efficient institutions tend to experience faster economic growth. This research shows that inefficient institutions are a reason why transition countries have not seized their 'advantage of backwardness'.

Keywords: European integration; transition; convergence; integration maturity; institutions (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:jes:journl:y:2025:v:16(1):p:13-36

DOI: 10.47743/ejes-2025-0102

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