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Trust, Institutions, and Growth in Post-Communist Eastern Europe: Evidence from EU Accession

Jaros, Zuzanna Renata LU (2025) EKHS11 20251
Department 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:
author
Jaros, Zuzanna Renata LU
supervisor
organization
course
EKHS11 20251
year
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}},
}