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The effects of convergence in governance on capital accumulation in the Black Sea Economic Cooperation Countries

Author

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  • Marie-Ange Véganzonès-Varoudakis

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Ahmet Faruk Aysan

    (Boǧaziçi üniversitesi = Boğaziçi University [Istanbul])

  • Omer Faruk Baykal

    (ECO Trade and Development Bank - ECO Trade and Development Bank - ECO Trade and Development Bank)

Abstract

The paper aims to ascertain the effects of governance on investment and vice versa among a sample set of developing countries. In an increasingly interdependent economic system, regions with good governance are considered to be areas of higher investment as a result of further integration and collaborative action among member states. Since its foundation in 1992, Black Sea Economic Cooperation (BSEC) countries have gone through a transition process and to a large extent these were about institutional transformation. Good governance and institutions are an assurance to guarantee property rights and minimize transaction costs, thus creating an environment conducive to investment and growth. To that end, our second aim is to find out the impact that BSEC has given to its member countries regarding convergence of governance institutions. The study is the first attempt in the literature to investigate how regionalization can provide institutional convergence besides economic convergence in the BSEC region.
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Suggested Citation

  • Marie-Ange Véganzonès-Varoudakis & Ahmet Faruk Aysan & Omer Faruk Baykal, 2011. "The effects of convergence in governance on capital accumulation in the Black Sea Economic Cooperation Countries," Post-Print halshs-00667656, HAL.
    • Handle: RePEc:hal:journl:halshs-00667656
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    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems

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