Prospective NATO or EU membership and institutional change in transition countries

Rainer Schweickert*, Inna Melnykovska, Ansgar Belke, Ingo Bordon

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract (may include machine translation)

This article quantifies the impact of incentives related to potential membership on institutional change as measured by the World Bank Governance Indicators. 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 hampers institutional development.

Original languageEnglish
Pages (from-to)667-692
Number of pages26
JournalEconomics of Transition
Volume19
Issue number4
DOIs
StatePublished - Oct 2011
Externally publishedYes

Keywords

  • EU
  • Governance
  • Hausman-Taylor IV estimation
  • Institutional change
  • NATO
  • Transition economies

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