Trust, Institutions, and Growth in Post-Communist Eastern Europe: Evidence from EU Accession
(2025) EKHS11 20251Department of Economic History
- Abstract
- This thesis investigates how European Union accession influenced economic performance in post-communist Eastern European countries. It highlights the mechanisms behind this impact, focusing on trust as a key component of social capital and on institutional quality. The paper estimates the effect of accession using fixed effects regressions, difference-in-differences, and an event-study model, on panel data from 15 countries (1998–2023). The findings indicate that
joining the EU significantly boosts economic performance, especially in post-Soviet nations. Institutions emerge as independent, significant mechanisms leading to better economic outcomes. The impact of EU membership diminishes when trust is included, underscoring its role as a... (More) - This thesis investigates how European Union accession influenced economic performance in post-communist Eastern European countries. It highlights the mechanisms behind this impact, focusing on trust as a key component of social capital and on institutional quality. The paper estimates the effect of accession using fixed effects regressions, difference-in-differences, and an event-study model, on panel data from 15 countries (1998–2023). The findings indicate that
joining the EU significantly boosts economic performance, especially in post-Soviet nations. Institutions emerge as independent, significant mechanisms leading to better economic outcomes. The impact of EU membership diminishes when trust is included, underscoring its role as a key transmission channel and highlighting the importance of social capital and institutions in driving long-term growth. The effects are particularly pronounced in the Baltic states, which experienced both faster GDP growth and a marked increase in trust following accession. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9205416
- author
- Jaros, Zuzanna Renata LU
- supervisor
- organization
- course
- EKHS11 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- European Union, Social Capital, Trust, Institutions, Transformation, Eastern Europe, Baltic States
- language
- English
- id
- 9205416
- date added to LUP
- 2025-08-25 08:39:59
- date last changed
- 2025-08-25 08:39:59
@misc{9205416, abstract = {{This thesis investigates how European Union accession influenced economic performance in post-communist Eastern European countries. It highlights the mechanisms behind this impact, focusing on trust as a key component of social capital and on institutional quality. The paper estimates the effect of accession using fixed effects regressions, difference-in-differences, and an event-study model, on panel data from 15 countries (1998–2023). The findings indicate that joining the EU significantly boosts economic performance, especially in post-Soviet nations. Institutions emerge as independent, significant mechanisms leading to better economic outcomes. The impact of EU membership diminishes when trust is included, underscoring its role as a key transmission channel and highlighting the importance of social capital and institutions in driving long-term growth. The effects are particularly pronounced in the Baltic states, which experienced both faster GDP growth and a marked increase in trust following accession.}}, author = {{Jaros, Zuzanna Renata}}, language = {{eng}}, note = {{Student Paper}}, title = {{Trust, Institutions, and Growth in Post-Communist Eastern Europe: Evidence from EU Accession}}, year = {{2025}}, }