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 language | English |
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Pages (from-to) | 667-692 |
Number of pages | 26 |
Journal | Economics of Transition |
Volume | 19 |
Issue number | 4 |
DOIs | |
State | Published - Oct 2011 |
Externally published | Yes |
Keywords
- EU
- Governance
- Hausman-Taylor IV estimation
- Institutional change
- NATO
- Transition economies