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Benchmarking institutional and structural indicators in EU candidate and potential candidate countries

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  • Savelin, Li
  • Alvarez Orviz, Roberto

Abstract

This paper reviews institutional and structural challenges in countries preparing for EU membership, i.e. Albania, Bosnia and Herzegovina, Kosovo*, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. Sound institutions and solid economic structures are not only the cornerstones of EU accession (as defined by the Copenhagen political and economic criteria), but are also crucial for achieving higher income levels and sustainable long-term growth. This paper finds that the EU candidate and potential candidate countries (EU CC/PCC) fare worse than the majority of EU Member States in a number of institutional and structural metrics, such as business environment, access to finance, judicial system, trade and competitiveness, labour market and education and institutional governance. When comparing EU CC/PCC among themselves, large intra-group disparities emerge. Countries such as the former Yugoslav Republic of Macedonia, Montenegro and, to a certain extent, Serbia and Turkey, tend to score on average higher than Albania, Bosnia and Herzegovina and Kosovo. While many EU CC/PCC have improved the quality of their institutions and economic governance over the past decade, it is crucial that they preserve the reform momentum to enable a sustainable convergence with the EU. / / * This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence. JEL Classification: F13, F15, G21, O11, O43

Suggested Citation

  • Savelin, Li & Alvarez Orviz, Roberto, 2017. "Benchmarking institutional and structural indicators in EU candidate and potential candidate countries," Occasional Paper Series 184, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2017184
    Note: 1998795
    as

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    References listed on IDEAS

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    Cited by:

    1. Moder, Isabella & Bonifai, Niccolò, 2017. "Access to finance in the Western Balkans," Occasional Paper Series 197, European Central Bank.
    2. Amat Adarov & Richard Grieveson & Mario Holzner & Olga Pindyuk & Hermine Vidovic, 2019. "Unsecured Lending in Central and Southeast Europe," wiiw Market Report 1, The Vienna Institute for International Economic Studies, wiiw.
    3. Gächter, Martin & Macki, Piotr & Moder, Isabella & Polgár, Éva Katalin & Savelin, Li & Żuk, Piotr, 2017. "Financial stability assessment of EU candidate and potential candidate countries," Occasional Paper Series 190, European Central Bank.

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    More about this item

    Keywords

    access to finance; business environment; economic growth; EU accession; governance; institutions; trade integration; Western Balkans;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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