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Assessing Eastern Europe's Capital Needs

Author

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  • Anthony Boote

    (International Monetary Fund)

Abstract

The capital needs that will enable Eastern Europe to catch up to EC standards of living are assessed within the framework of a constant elasticity of substitution production function. This function, parameterized on the EC, is assumed to apply, with certain inefficiency factors, to Eastern Europe in 1992. Quantitative results, given the heroic assumptions required, are bounded by large ranges. The approach provides a framework for assessing the factors that will determine future capital needs in Eastern Europe and underscores the crucial role of efficiency gains in this process.

Suggested Citation

  • Anthony Boote, 1992. "Assessing Eastern Europe's Capital Needs," IMF Staff Papers, Palgrave Macmillan, vol. 39(4), pages 948-956, December.
    • Handle: RePEc:pal:imfstp:v:39:y:1992:i:4:p:948-956
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    Citations

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    Cited by:

    1. Mr. Stabley W. Black, 2001. "Obtstacles to Faster Growth in Transition Economies: The Mongolian Case," IMF Working Papers 2001/037, International Monetary Fund.
    2. Robert Holzmann & Christian Thimann & Angela Petz, 1994. "Pressure to Adjust: Consequences for the OECD Countries from Reforms in Eastern Europe," International Trade 9403001, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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