Prospective NATO or EU Membership and Institutional Change in Transition Countries

26 Pages Posted: 22 Sep 2011

See all articles by Rainer Schweickert

Rainer Schweickert

University of Kiel - Institute for World Economics (IfW)

Inna Melnykovska

University of Kiel - Institute for World Economics (IfW)

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

Multiple version iconThere are 4 versions of this paper

Date Written: October 2011

Abstract

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.

Keywords: EU, NATO, transition economies, institutional change, governance, Hausman‐Taylor IV estimation

JEL Classification: C33, C36, F15, F20, F50, P20, P30, O19

Suggested Citation

Schweickert, Rainer and Melnykovska, Inna and Belke, Ansgar Hubertus and Bordon, Ingo G., Prospective NATO or EU Membership and Institutional Change in Transition Countries (October 2011). Economics of Transition, Vol. 19, Issue 4, pp. 667-692, 2011. Available at SSRN: https://ssrn.com/abstract=1932014 or http://dx.doi.org/10.1111/j.1468-0351.2011.00415.x

Rainer Schweickert (Contact Author)

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

Duesternbrooker Weg 120
D-24118 Kiel
Germany

Inna Melnykovska

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

Duesternbrooker Weg 120
D-24118 Kiel
Germany

Ansgar Hubertus Belke

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

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