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Convergence in Transition Countries – Focus on Investment: Central and Eastern Europe, 1970–1996

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  • Saul Estrin
  • Stepana Lazarova
  • Giovanni Urga

Abstract

Our data on investment in Central and Eastern European economies reveal that, though investment rates were typically high in the 1970s, the marginal efficiency of investment was low. Investment shares begun to decline in the 1980s, before the collapse of the communist system, but there was some recovery in most countries after transition. We use the Kalman filter framework to test for convergence in investment rates. We find some evidence of convergence in Central European countries – former Czechoslovakia, Poland and the countries of the former Yugoslavia. For the remainder of the socialist bloc, however, we were unable to isolate convergence in investment shares. Copyright Kluwer Academic Publishers 2001

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  • Saul Estrin & Stepana Lazarova & Giovanni Urga, 2001. "Convergence in Transition Countries – Focus on Investment: Central and Eastern Europe, 1970–1996," Economic Change and Restructuring, Springer, vol. 34(3), pages 215-230, October.
    • Handle: RePEc:kap:ecopln:v:34:y:2001:i:3:p:215-230
    DOI: 10.1023/A:1011810922630
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    1. Roland-Holst, David & Sugiyarto, Guntur, 2014. "Growth Horizons for a Changing Asian Regional Economy," ADB Economics Working Paper Series 392, Asian Development Bank.

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