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Deindustrialisation and Structural Change During the Post-Communist Transition

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  • Tomasz Mickiewicz
  • Anna Zalewska

Abstract

The aim of this paper is to model the evolution of employment structure in post-communist economies in the broader context of deindustrialisation. The paper builds on the model of structural change developed by Rowthorn and Wells (1987). We show that the starting point of high industry sector share in total employment and its direct fall when productivity of sectors changes in favour of services can be explained in terms of this framework. Moreover, the model can also describe the phenomenon of a further expansion of the agriculture, observed in countries classified as "less consistent" in the reforms implementation. Hence, we distinguish two development paths, the efficient one, called "horizontal", and the inefficient one called "vertical". We illustrate it with empirical data, using alternative measures of structural change and patterns of structural evolutions during transition. Finally, we discuss the link between the EBRD indicators of reforms and structural change. We show that the "quality" of reforms, not the initial GDP level determines a country's development path.

Suggested Citation

  • Tomasz Mickiewicz & Anna Zalewska, 2001. "Deindustrialisation and Structural Change During the Post-Communist Transition," William Davidson Institute Working Papers Series 383, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2001-383
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39767/3/wp383.pdf
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    Cited by:

    1. Peter Huber & Peter Mayerhofer, 2006. "Wandel der Sektorstruktur in der Wirtschaftsregion "Centrope Europaregion Mitte"," WIFO Studies, WIFO, number 26623.
    2. Peter Huber & Herbert Brücker & Janos Köllö & Iulia Traistaru & Tomasz Mickiewicz, 2002. "Regional and Labour Market Development in Candidate Countries. A Literature Survey," WIFO Studies, WIFO, number 23340.
    3. Zoran Kovacevic, 2005. "Structural Changes Of Croatian Manufacturing," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 14(2), pages 203-220, december.
    4. Lukiyanova Anna, 2003. "Transition to Postindustrial Society? A Study of the Service Sector Employment in Russia," EERC Working Paper Series 03-09e, EERC Research Network, Russia and CIS.
    5. Peter Huber & Peter Mayerhofer & Gerhard Palme & Martin Feldkircher, 2006. "Centrope als zentrale Übergangsregion in Europa," WIFO Monatsberichte (monthly reports), WIFO, vol. 79(6), pages 467-485, June.
    6. Michael Knogler, 2002. "Arbeitsmarktpolitische Herausforderungen in den Ländern der EU-Beitrittskandidaten," Working Papers 235, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).

    More about this item

    Keywords

    transition economics; employment structures; deindustrialization; convergence; liberalization;
    All these keywords.

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