Barriers to Institutional Development in Europe
This paper considers the problem of institutional development in the countries of Central and Eastern Europe. We analyze existing approaches to explaining the causes and factors of institutional development and seek to determine why there was no evidence of institutional convergence in European countries between 1990 and 2014. We look at the theoretical and methodological limitations of approaches to the analysis of institutional development characteristic of mainstream political science. The data we utilize comprise a wide range of quantitative variables which measure levels of institutional development, social trust and political capital. We also use our own Total Factor Productivity (TFP) estimates obtained through non-parametric methods using raw data. We analyze relationships between the variables using correlations, regression analysis and clustering. The results of statistical analysis reveal the mechanism through which TFP influences institutional development: we show that TFP is a necessary prerequisite for institutional transformation.