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Private property - the inclusive institution which shaped dissimilar economic dynamics. Evidence from the Czech Republic and Romania

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  • Oana-Ramona SOCOLIUC (GURIȚĂ)

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • Andreea-Oana IACOBUȚĂ-MIHÄ‚IȚĂ

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • Elena CIORTESCU

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

Following the path prescribed by Acemoglu and Robinson, development disparities can be better interpreted in the light of the effectiveness of political and economic institutions which rule society. From this perspective, the post-communist economies provide enough evidence when addressing the transition strategies followed in order to shape the market economy. Our paper analyses the impact of private property reform on the economic outcomes of Romania and the Czech Republic, as exponents of the two transition strategies. We employ a Vector Error Correction Model, followed by a Variance decomposition and a Granger Causality to emphasize the contribution of dissimilar property reforms to the economic dynamics. The results highlight that clear property rights in the Czech Republic have created the auspicious circumstances for enhancing growth and prosperity while, for Romania, it became an obstacle against economic growth.

Suggested Citation

  • Oana-Ramona SOCOLIUC (GURIȚĂ) & Andreea-Oana IACOBUȚĂ-MIHÄ‚IȚĂ & Elena CIORTESCU, 2021. "Private property - the inclusive institution which shaped dissimilar economic dynamics. Evidence from the Czech Republic and Romania," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 213-243, December.
    • Handle: RePEc:jes:journl:y:2021:v:12(1):p:213-243
    DOI: https://doi.org/10.47743/ejes-2021-0211
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