Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/29749 
Year of Publication: 
2009
Series/Report no.: 
DIW Discussion Papers No. 915
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
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.
Subjects: 
EU
NATO
transition economies
institutional change
governance
JEL: 
F15
F20
F50
P20
P30
O19
Document Type: 
Working Paper

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