Belke, Ansgar Bordon, Ingo G. Melnykovska, Inna Schweickert, Rainer
Year of Publication:
Ruhr Economic Papers 131
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 NATOclearly 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.
EU NATO transition economies institutional change governance