IDEAS home Printed from https://ideas.repec.org/p/see/wpaper/89.html
   My bibliography  Save this paper

Macroeconomic Stability, Governance and Growth: Empirical Lessons from the Post-Communist Transition

Author

Listed:
  • Christopher Gerry

    (UCL School of Slavonic and East European Studies)

  • Jong-Kyu Lee
  • Tomasz Marek Mickiewicz

    (UCL School of Slavonic and East European Studies)

Abstract

Using panel data for the period 1989-2006 we revisit the empirics of economic growth in the context of the post-communist transition. We pay particular attention to the mechanisms of causation and to the potential endogeneity of the macroeconomic stability indicators considered to be important in the existing literature. Carefully employing a variety of econometric techniques we consistently find that macroeconomic instability is bad for economic growth. We find some evidence that institutions of governance are important for economic growth through their influence on the macroeconomic environment. That is, good institutions are conducive to macroeconomic stability which in turn positively impacts upon economic growth. We also find, in contrast with other work, that investments in education have had a strong positive impact on growth in transition while other 'standard' economic growth determinants remain less important. These findings are shown to be robust to a variety of econometric approaches, specifications and time spans.

Suggested Citation

  • Christopher Gerry & Jong-Kyu Lee & Tomasz Marek Mickiewicz, 2008. "Macroeconomic Stability, Governance and Growth: Empirical Lessons from the Post-Communist Transition," UCL SSEES Economics and Business working paper series 89, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:89
    as

    Download full text from publisher

    File URL: http://discovery.ucl.ac.uk/17456/1/17456.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Costa Junior, Celso Jose, 2012. "Institutional Barrier and the World Income Distribution," MPRA Paper 45633, University Library of Munich, Germany.

    More about this item

    Keywords

    Economic growth; macroeconomic stability; institutions; inflation; economic transition;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:see:wpaper:89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/csescuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.