Prospective NATO or EU membership and institutional change in transition countries1 |
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| Authors: | Rainer Schweickert Inna Melnykovska Ansgar Belke Ingo Bordon |
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| Institution: | 1. Kiel Institute for the World Economy. E‐mail: rainer.schweickert@ifw‐kiel.de;2. Department of Political Science at the University of Kiel and Institute for East European Studies of the Freie Universit?t Berlin. E‐mail: inna.melnykovska@fu‐berlin.de;3. Chair of Macroeconomics, University of Duisburg‐Essen. E‐mail: ansgar.belke@uni‐due.de;4. University of Duisburg‐Essen. E‐mail: ingo.bordon@uni‐due.de |
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| 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. |
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| Keywords: | C33 C36 F15 F20 F50 P20 P30 O19 EU NATO transition economies institutional change governance Hausman‐Taylor IV estimation |
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