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The political economy of reforms: Empirical evidence from post-communist transition in the 1990s

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  • Kim, Byung-Yeon
  • Pirttilä, Jukka

Abstract

Using a novel data set from post-communist countries in the 1990s, this paper examines linkages between political constraints, economic reforms and growth.A dynamic panel analysis suggests public support for reform is negatively associated with income inequality and unemployment.Both the ex post and ex ante political constraints of public support affect progress in economic reform, which in turn influences economic growth.The findings highlight that while economic reforms are needed to foster growth, they must be designed so that they do not undermine political support for reform.

Suggested Citation

  • Kim, Byung-Yeon & Pirttilä, Jukka, 2003. "The political economy of reforms: Empirical evidence from post-communist transition in the 1990s," BOFIT Discussion Papers 4/2003, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitp:bdp2003_004
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    Cited by:

    1. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," William Davidson Institute Working Papers Series wp1057, William Davidson Institute at the University of Michigan.
    3. Michael Mitsopoulos & Theodore Pelagidis, 2007. "Rent‐Seeking and Acceptance of Reforms in Higher Education," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 10(3), pages 177-192.
    4. Michael Mitsopoulos & Theodore Pelagidis, 2007. "Rent-Seeking and Ex Post Acceptance of Reforms in Higher Education," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 10(3), pages 177-192.
    5. Falcetti, Elisabetta & Lysenko, Tatiana & Sanfey, Peter, 2006. "Reforms and growth in transition: Re-examining the evidence," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 421-445, September.

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    More about this item

    Keywords

    Political constraints; economic reform; transition; growth; dynamic panel models;
    All these keywords.

    JEL classification:

    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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