Prospective NATO or EU Membership and Institutional Change in Transition Countries

29 Pages Posted: 20 Oct 2009

See all articles by Ansgar Hubertus Belke

Ansgar Hubertus Belke

University of Duisburg-Essen - Department of Economics and Business Administration; IZA Institute of Labor Economics; Centre for European Policy Studies

Ingo G. Bordon

University of Duisburg-Essen

Inna Melnykovska

University of Kiel - Institute for World Economics (IfW)

Rainer Schweickert

University of Kiel - Institute for World Economics (IfW)

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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

JEL Classification: F15, F20, F50, P20, P30, O19

Suggested Citation

Belke, Ansgar Hubertus and Bordon, Ingo G. and Melnykovska, Inna and Schweickert, Rainer, Prospective NATO or EU Membership and Institutional Change in Transition Countries. IZA Discussion Paper No. 4483. Available at SSRN: https://ssrn.com/abstract=1490505

Ansgar Hubertus Belke (Contact Author)

University of Duisburg-Essen - Department of Economics and Business Administration ( email )

Universitätsstr. 9
Essen, 45141
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for European Policy Studies ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

Ingo G. Bordon

University of Duisburg-Essen ( email )

Lotharstrasse 1
Duisburg, 47048
Germany

HOME PAGE: http://www.makro.wiwi.uni-due.de/

Inna Melnykovska

University of Kiel - Institute for World Economics (IfW) ( email )

Duesternbrooker Weg 120
D-24118 Kiel
Germany

Rainer Schweickert

University of Kiel - Institute for World Economics (IfW) ( email )

Duesternbrooker Weg 120
D-24118 Kiel
Germany

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