An Assessment of Institutional Improvements in Romania and Bulgaria Following EU Accession

Authors

  • Dragos Dinca Academia de Studii Economice din Bucuresti

DOI:

https://doi.org/10.47743/saeb-2022-0015

Keywords:

transitional economies, European Union, institutional performance, corruption, difference-in-differences

Abstract

The purpose of this paper is to analyse to what extent accession to the European Union affected the quality of institutions in Romania and Bulgaria. In order to measure these effects, indicators of perceived corruption have been built based on data from the Life in Transition surveys I, II, III, conducted by the European Bank of Reconstruction and Development. Under the specifications of a difference-in-differences methodology, evidence of a reduction in small acts of corruption has been discovered for both countries, with larger effects in Bulgaria. In regards to high level corruption, Romania proved to be successful in tackling this dimension nine years after the accession, while for Bulgaria the evidence suggests an unfavourable deterioration over time.

References

Acemoglu, D., & Robinson, J. (2008). The role of institutions in growth and development. Retrieved from http://hdl.handle.net/10986/28045

Albouy, D. (2004). Program Evaluation and the Difference in Difference Estimator. Economics, 131, 1-4.

Alexiou, C., Vogiazas, S., & Solovev, N. (2020). Economic growth and quality of institutions in 27 postsocialist economies. Journal of Economic Studies, 47(4), 769-787. http://dx.doi.org/10.1108/JES-02-2019-0069

Amini, C., & Douarin, E. (2020). Corruption and Life Satisfaction in Transition: Is Corruption a Social Norm in Eastern Europe? Social Indicators Research, 151(2), 723-766. http://dx.doi.org/10.1007/s11205-020-02389-6

Annoni, P., & Charron, N. (2019). Measurement Assessment in Cross-Country Comparative Analysis: Rasch Modelling on a Measure of Institutional Quality. Social Indicators Research, 141, 31–60. http://dx.doi.org/10.1007/s11205-017-1821-z

Atanasov, V. A., & Black, B. S. (2016). Shock-based causal inference in corporate finance and accounting research. Critical Finance Review, 5, 207-304. http://dx.doi.org/10.1561/104.00000036

Auriol, E., Estache, A., & Wren-Lewis, L. (2018). Can Supranational Infrastructure Regulation Compensate for National Institutional Weaknesses? Revue Économique 69(6), 913-936. http://dx.doi.org/10.3917/reco.696.0913

Balcerzak, A. P., & Pietrzak, M. B. (2016). Quality of institutional systems for global knowledge-based economy and convergence process in the European Union. Multiple criteria decision analysis for European countries in the years 2000-2013. Economia e Sociologia, 9(4). http://dx.doi.org/10.14254/2071-789X.2016/9-4/4

Batory, A. (2012). Why do anti‐corruption laws fail in Central Eastern Europe? A target compliance perspective. Regulation & Governance, 6(1), 66-82. http://dx.doi.org/10.1111/j.1748-5991.2011.01125.x

Chang, H., & Evan, P. (2005). The Role of Institutions in Economic Change. In S. De Paula & G. Dymski (Eds.), Reimagining Growth. Towards A renewal of Development Theory (pp. 99-129 ). London: Zed Books.

Commission of the European Communities. (2006). Implementing the partnership for growth and jobs: making europe a pole of excellence on corporate social responsibility. Retrieved from https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2006:0136:FIN:EN:PDF

Dimitrova, A. (2020). Understanding Europeanization in Bulgaria and Romania: following broader European trends or still the Balkan Exceptions? . European Politics and Society, 22(2), 295-304. http://dx.doi.org/10.1080/23745118.2020.1729054

Dutulescu, S., & Nisulescu-Ashrafzadeh, I. (2016). Fenomenul coruptiei în România. Audit Financiar, 14, 623-630.

Emerson, S. (2006). Corruption in Bulgaria. Public Integrity, 8(1), 65-76. http://dx.doi.org/10.2753/PIN1099-9922080105

European Commission. (2018). Report from the Commission to the European Parliament and Council. On Progress in Romania under the Cooperation and Verification Mechanism. Retrieved from https://ec.europa.eu/info/sites/info/files/progress-report-romania-2018-com-2018-com-2018-851_en.pdf

European Commission. (2022). European Neighbourhood Policy and Enlargement Negotiations. Chapters of the acquis. Retrieved from https://ec.europa.eu/neighbourhood-enlargement/enlargement-policy/conditions-membership/chapters-acquis_en

Fazekas, M. (2017). Assessing the Quality of Government at the Regional Level Using Public Procurement Data. Retrieved from https://ec.europa.eu/regional_policy/sources/docgener/work/201703_regional_pp_governance.pdf

Gament, N. (2015). New dimensions of corruption in EU member states. Criminal Law Review, V(1), 31-36.

Gould, D. J., & Amaro-Reyes, J. A. (1983). The effects of corruption on administrative performance : illustrations from development countries WORLD BANK STAFF WORKING PAPERS No. 580. Retrieved from https://documents.worldbank.org/en/publication/documents-reports/documentdetail/799981468762327213/the-effects-of-corruption-on-administrative-performance-illustrations-from-development-countries

Grabner, C., & Ghorbani, A. (2019). Defining Institutions - A review and a synthesis. ICAE Working Paper Series No. 89. Retrieved from https://www.jku.at/fileadmin/gruppen/108/ICAE_Working_Papers/wp89.pdf

Gugiu, M. (2012). EU Enlargement and Anticorruption: Lessons Learned from Romania. Journal of European Integration, 34(5), 429-446. http://dx.doi.org/10.1080/07036337.2011.595487

Judge, W. Q., McNatt, D. B., & Xu, W. (2011). The antecedents and effects of national corruption: A meta-analysis. Journal of World Business, 46(1), 93-103. http://dx.doi.org/10.1016/j.jwb.2010.05.021

Kartal, M. (2014). Accounting for the bad apples: The EU’s impact on national corruption before and after accession. Journal of European Public Policy, 21(6), 941-959. http://dx.doi.org/10.1080/13501763.2014.910820

Khakhar, P., & Abushal, Z. (2007). EU Accession: Romania & Bulgaria - Black Sea appeal. Foreign Direct Investment.

Lacatus, C., & Sedelmeier, U. (2020). Does monitoring without enforcement make a difference? The European Union and anti-corruption policies in Bulgaria and Romania after accession. Journal of European Public Policy, 27, 1236-1255. http://dx.doi.org/10.1080/13501763.2020.1770842

Leamer, E. (1983). Let’s Take the Con Out of Econometrics. The American Economic Review, 73, 31-43.

Letia, A. (2014). Unele consideratii asupra coruptiei si masurilor de combatere a acesteia, în special în domeniul afacerilor. Revista Dreptul, 8, 208-237.

Levitz, P., & Pop-Eleches, G. (2010). Why no backsliding? The European Union’s impact on democracy and governance before and after accesion. Comparative Political Studies, 43(4), 457-485. http://dx.doi.org/10.1177/0010414009355266

Mauro, P. (2004). The Persistence of Corruption and Slow Economic Growth. IMF Staff Papers, 51(1), 1-18.

Ménard, C., & Shirley, M. M. (2005). Handbook of new institutional economics (Vol. 9). Dordrecht: Springer.

Mutz, D. Y., & Young, L. (2011). Communication and public opinion: Plus ca change? Public Opinion Quarterly, 75, 1018-1044. http://dx.doi.org/10.1093/poq/nfr052

Nenovsky, N., Tochkov, K., & Turcu, C. (2013). Monetary regimes, economic stability, and EU accession: Comparing Bulgaria and Romania. Communist and Post-Communist Studies, 46(1), 13-23. http://dx.doi.org/10.1016/j.postcomstud.2012.12.002

North, D. C. (1990). Institutions, Institutional Change and Economic Performance Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511808678

North, D. C. (2003). The role of institutions in economic development. UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE, DISCUSSION PAPERS SERIES No. 2003. Retrieved from https://unece.org/DAM/oes/disc_papers/ECE_DP_2003-2.pdf

Noutcheva, G., & Bechev, D. (2008). The successful laggards: Bulgaria and Romania’s accession to the EU. Eastern European Politics and Societies, 22(1), 114-144. http://dx.doi.org/DOI:10.1177/0888325407311793

Samadi, A. H., & Alipourian, M. (2021). Measuring Institutional Quality: A review. In N. Faghih & A. H. Samadi (Eds.), Dynamics of Institutional Change in Emerging Market Economies: Springer. http://dx.doi.org/10.1007/978-3-030-61342-6_6

Schönfelder, N., & Wagner, H. (2018). Institutional convergence in Europe. Economics Discussion Papers, No 2018-53. Retrieved from http://www.economics-ejournal.org/dataset/PDFs/discussionpapers_2018-53.pdf

Spendzharova, A., & Vachudova, A. (2012). Catching Up? Consolidating Liberal Democracy in Bulgaria and Romania after EU accession. West European Politics, 35, 39-58. http://dx.doi.org/10.1080/01402382.2012.631312

Stancu, L. C. (2013). Consideratii generale privind coruptia. Pro Patria Lex, 12(2), 264-275.

Takacs Haynes, K., & Rašković, M. M. (2021). Living with corruption in Central and Eastern Europe: Social identity and the role of moral disengagement. Journal of Business Ethics, 174(4), 1-21. http://dx.doi.org/10.1007/s10551-021-04927-9

Tannenbaum, C., Greaves, L., & Graham, I. D. (2016). Why sex and gender matter in implementation research. BMC Medical Research Methodology, 16(1), 145. http://dx.doi.org/10.1186/s12874-016-0247-7

The European Bank for Reconstruction and Development. (2006). Life in Transition Survey I: A survey of people’s experiences and attitudes. Retrieved from https://www.ebrd.com/downloads/research/economics/microdata/litsrepo.pdf

Tóth, I. J., & Hajdu, M. (2021). Corruption, Institutions and Convergence. In M. Landesmann & I. P. Székely (Eds.), Does EU Membership Facilitate Convergence? The Experience of the EU's Eastern Enlargement (Vol. 2): Palgrave-Macmillan.

Wing, C., Simon, K., & Bello-Gomez, R. A. (2018). Designing difference in difference studies: Best practices for public health policy research. Annual Review of Public Health, 39, 453-469. http://dx.doi.org/10.1146/annurev-publhealth-040617-013507

Zaman, G., & Ionescu, L. (2014). The impact of international economic crises on corruption in Romania. Economic Computation and Economic Cybernetics Studies and Research, 48(1).

Downloads

Published

2022-06-27

How to Cite

Dinca, D. (2022). An Assessment of Institutional Improvements in Romania and Bulgaria Following EU Accession. Scientific Annals of Economics and Business, 69(2), 293–316. https://doi.org/10.47743/saeb-2022-0015

Issue

Section

Articles

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.