Prospective Nato or EU Membership and Institutional Change in Transition Countries
Posted: 27 Oct 2009
Date Written: August 1, 2009
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
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