The Effects of the Eastern European Countries’ Economic Reform on the Western Industrial Economies: a Macroeconomic Approach

  • Alessandro Giustiniani
  • Francesco Papadia
  • Daniela Porciani
Part of the Central Issues in Contemporary Economic Theory and Policy book series (CICETP)

Abstract

During the sixties, a quite vivid debate developed among economists and sociologists on the issue raised by Tinbergen ([58], p. 341) on the converging pattern shown by centrally planned and market economies, as each system was adopting elements of the other (2). In a nutshell, the thesis was that the two economic systems, considered less than optimal in the light of their difficulties, would move towards an intermediate “optimal” economic regime. However, Tinbergen concluded underlining that: «It is … hardly conceivable that we will soon be able to indicate precisely where the optimum lies, or even to say whether ‘East and West’ will actually ‘meet’ in their attempts to find the ‘welfare summit’».

Keywords

Migration Europe Income Expense OECD 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Bibliography

  1. [1]
    Abel A.: «Dynamic Effects of Permanent and Temporary Tax Policies in a q Model of Investment», Journal of Monetary Economics n. 3, 1982.Google Scholar
  2. [2]
    Alton T.P. — Badach K. — Bakondi R. — Bass E.M. — Bombelles J.T. — Brumaru A. -Lazarcik G. — Staller G.J.: «Economic Growth in Eastern Europe 1975–1989», Research Project on National Income in East Central Europe, New York, L.W. International Financial Research, Inc. Occasional Papers, n. 110, 1990.Google Scholar
  3. [3]
    Bagnou P. — Kruus A.: «Intermod Model User’s and Developer’s Guide for PC Systems», Ottawa, Canadian Department of Finance, Working Papers n. 9, 1988.Google Scholar
  4. [4]
    Baldwin R.: «The Growth Effects of 1992», Economic Policy n. 9, 1989.Google Scholar
  5. [5]
    Baldwin R.: «Measuring 1992’s Medium-Term Dynamic Effects», NBER, Working Papers n. 3166, 1989.CrossRefGoogle Scholar
  6. [6]
    Baumol W.J.: «Productivity Growth, Convergence and Welfare: What the Long-Run Data Show», The American Economic Review n. 5, 1986.Google Scholar
  7. [7]
    Becker G.S.: Human Capital, New York, NBER, 1975.Google Scholar
  8. [8]
    Bergson A.: «Comparative Productivity: The USSR, Eastern Europe, and the West», The American Economic Review n. 3, 1987.Google Scholar
  9. [9]
    Buiter W.H.: «Time Preference and International Lending and Borrowing in an Overlapping-Generations Model», Journal of Political Economy n. 41, 1981.Google Scholar
  10. [10]
    Burketr J.P. — Skegro B.: «Capitalism, Socialism, and Productivity: An Econometric Analysis of CES and Translog Functions», European Economic Review n. 6, 1989.Google Scholar
  11. [11]
    Cecchini P.: The European Challenge, 1992. The Benefits of a Single Market, London, Gower, 1988.Google Scholar
  12. [12]
    Cepr: Monitoring European Integration. The Impact of Eastern Europe London, 1990.Google Scholar
  13. [13]
    Chenery H.: «Growth and Transformation», in Chenery H. — Robinson S. Syrquin M. (eds.): Industrialization and Growth: A Comparative Study, New York, Oxford University Press, 1986.Google Scholar
  14. [14]
    Denison E.F.: Why Growth Rates Differ, Washington, The Brookings Institution, 1967.Google Scholar
  15. [15]
    Denison E.F.: Accounting for Slower Economic Growth, Washington, The Brookings Institution, 1979.Google Scholar
  16. [16]
    Ellman M.: Collectivisation, Convergence and Capitalism: Political Economy in a Divided World, London, Academic Press, 1987.Google Scholar
  17. [17]
    Englander S.A.: «Tests of Total Factor Productivity Measurement», OECD, Working Papers n. 54, 1988.CrossRefGoogle Scholar
  18. [18]
    Englander S.A. — Mitteistadt A.: «Total Factor Productivity: Macroeconomic and Structural Aspects of the Slowdown», OECD, Economic Studies n. 10, 1988.CrossRefGoogle Scholar
  19. [19]
    Fischer S. — Frenkel J.: «Interest Rate Equalization and Patterns of Production, Trade and Consumption in a Two-Country Growth Model», The Economic Record December. 1974.Google Scholar
  20. [20]
    Fischer S. — Frenkel J. «Economic Growth and Stages of the Balance of Payments: A Theoretical Model», in Horwich G. — Samuelson P.A. (eds.): Trade, Stability, and Macro-economics: Essays in Honor of Lloyd A. Metzler, London, Academic Press, 1974.Google Scholar
  21. [21]
    Fitoussi J.P. — Phelps E.S.: «Global Effects of Eastern European Rebuilding and the Adequacy of Western Saving: An Issue for the 1990s», paper presented at the Second Villa Mondragon Annual Conference on World Saving: Prosperity and Growth Roma, July 2, 1990.Google Scholar
  22. [22]
    Goldsmith R.W.: Comparative National Balance Sheets, Chicago and London, The University of Chicago Press, 1985.Google Scholar
  23. [23]
    Hardt J.P. — Mcmillan C.H. (eds.): Planned Economies Confronting the Challenges of the 1980s, Cambridge, Cambridge University Press, 1988.Google Scholar
  24. [24]
    Havlik P.: «An Overview of the Methods Used for East-West GDP Comparisons», paper presented at the Conference on: Statistics of Central and Eastern European Countries organized by the OECD and the United Nations, Paris, September 10–12, 1990.Google Scholar
  25. [25]
    Helliwell J.F. — Meredith G. — Durand Y. — Bagnoli P.: «Intermod 1.1: A G-7 Version of the IMF’s Multimod», Economic Modelling January 1990.Google Scholar
  26. [26]
    Kenen P.: «Transitional Agreements for Trade and Payments Among the CMEA Countries», IMF, Working Papers n. 79, 1990.Google Scholar
  27. [27]
    Kravis I.B. — Heston A. — Summers R.: World Product and Income, Baltimore and London, The Johns Hopkins University Press, 1982.Google Scholar
  28. [28]
    Lauterbach A.: «The “Convergence” Controversy Revisited», Kyklos fasc. 4, 1976.Google Scholar
  29. [29]
    Lipton D. — Sachs J.: «Accumulation and Growth in a Two-Country Model: A Simulation Approach», Journal of International Economics n. 15, 1983.Google Scholar
  30. [30]
    Lucas R.E.: «On the Mechanics of Economic Development», Journal of Monetary Economics n. 22, 1988.Google Scholar
  31. [31]
    Maddison A.:«Long-Run Dynamics of Productivity Growth», BNL, Quarterly Review n. 128, 1979.Google Scholar
  32. [32]
    Maddison A.: «Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment», Journal of Economic Literature June 1987.Google Scholar
  33. [33]
    Masson P.R. — Meredith G.: «Economic Implications of German Unification for the Federal Republic and the Rest of the World», IMF, Working Papers n. 85, 1990.Google Scholar
  34. [34]
    Masson P.R. — Meredith G. — Symansky S.: «Multimod Mark II: A Revised and Extended Model», IMF, Occasional Papers, n. 71, 1990.Google Scholar
  35. [35]
    Meredith G.: «Intermod 2.0: Model Specification and Simulation Properties», Ottawa, Canadian Department of Finance, Working Papers, n. 7, 1989.Google Scholar
  36. [36]
    Meyer-Zu-Schlochtern F.J.M.: «An International Sectoral Data Base for Thirteen OECD Countries», OECD, Working Papers n. 57, 1988.CrossRefGoogle Scholar
  37. [37]
    Morgan Guaranty Trust Company: «Eastern Europe: A Cautionary Note», World Financial Markets, n. 1, February 1990.Google Scholar
  38. [38]
    Nun D.M.: «Perestroika: Transition from Central Planning to Market Socialism», Economic Policy: A European Forum, n. 7, 1988.Google Scholar
  39. [39]
    Oecd: Flows and Stocks of Fixed Capital, 1962–1987, Paris, OECD, April 1989.Google Scholar
  40. [40]
    Oecd: Financial Market Trends Parigi, OECD, n. 45, February 1990.Google Scholar
  41. [41]
    Oecd: Impact of German Economic and Monetary Union in OECD Countries, Note by the Secretariat, Paris, OECD, May 1990.Google Scholar
  42. [42]
    Oecd: Economic Outlook Paris, OECD, n. 47, June 1990.Google Scholar
  43. [43]
    Oecd: Labour Force Statistics: 1968–1988, Paris, OECD, 1990.Google Scholar
  44. [44]
    Oecd: Quarterly Labour Force Statistics Paris, OECD, n. 3, 1990.Google Scholar
  45. [45]
    Oniki H. — Uzawa H.: «Patterns of Trade and Investment in a Dynamic Model of International Trade», Review of Economic Studies January 1965.Google Scholar
  46. [46]
    Papoulis A.: Probability, Random Variables, and Stochastic Processes, New York, McGraw-Hill, 1965.Google Scholar
  47. [47]
    Project Link: Global Economic Implications of Financial Transfers to Eastern Europe and the Soviet Union mimeo, April 1990.Google Scholar
  48. [48]
    Roland G.: «Gorbachev and the Common European Home: The Convergence Debate Revived?», Kyklos fasc. 3, 1990.Google Scholar
  49. [49]
    Romer P.M.: «Increasing Returns and Long-Run Growth», Journal of Political Economy n. 5, 1986.Google Scholar
  50. [50]
    Romer P.M.: «Growth Based on Increasing Returns Due to Specialization», The American Economic Review — Papers and Proceedings of the American Economic Association n. 2, 1987.Google Scholar
  51. [51]
    Romer P.M.: «Increasing Returns and New Developments in the Theory of Growth», NBER, Working Papers n. 3098, 1989.CrossRefGoogle Scholar
  52. [52]
    Romer P.M.: «Capital Accumulation in the Theory of Long-Run Growth», in Barro R.J. (ed): Modern Business Cycle, Oxford, Basil Blackwell, 1989.Google Scholar
  53. [53]
    Rosa G. — Siesto V.: Il capitale fisso industriale: stime settoriali e verifiche dirette Bologna, il Mulino, 1985.Google Scholar
  54. [54]
    Ruffin R.J.: «Growth and the Long-Run Theory of International Capital Movements», The American Economic Review n. 5, 1979.Google Scholar
  55. [55]
    Spulber N. — Horowitz I.: Quantitative Economic Policy and Planning New York, Norton, 1976.Google Scholar
  56. [56]
    Summers R. — Heston A.: «A New Set of International Comparisons of Real Product and Prices: Estimates for 130 Countries, 1950–1985», The Review of Income and Wealth, n. 1, 1988.Google Scholar
  57. [57]
    Svensson L.E.O. — Razin A.: «The Current Account and Productivity Changes: A Diagrammatic Note», Foder Institute for Economic Research, Faculty of Social Science, Tel Aviv University, Working Papers n. 21, 1982.Google Scholar
  58. [58]
    Tinbergen J.: «Do Communist and Free Economies Show a Converging Pattern?», Soviet Studies, n. 4, 1961.Google Scholar
  59. [59]
    Tobin J.: «A General Equilibrium Approach to Monetary Theory», Journal of Money, Credit and Banking, n. 1, 1969.Google Scholar
  60. [60]
    United Nations, Economic Commission for Europe Economic Survey of Europe in 1989–1990, New York, 1990.Google Scholar
  61. [61]
    United Nations, Development Programme: Human Development Report New York, 1990.Google Scholar
  62. [62]
    Wefa Group: World Economic Outlook, Bala Gynwyd ( Pennsylvania, USA ), 1990.Google Scholar
  63. [63]
    Whitesell R.S.: «The Influence of Central Planning on Economic Slowdown in the Soviet Union and Eastern Europe: A Comparative Production Function Analysis», Economica n. 206, 1985.Google Scholar
  64. [64]
    Wolff E.N.: «Capital Formation and Long-Term Productivity Growth: A Comparison of Seven Countries», New York University, Economic Research Reports n. 37, 1987.Google Scholar
  65. [65]
    Wyplosz C.: Post-Reform East and West: Capital Accumulation and the Labor Mobility Constrained mimeo, December 1990.Google Scholar

Copyright information

© SIPI Srl, Rivista di Politica Economica 1993

Authors and Affiliations

  • Alessandro Giustiniani
    • 1
  • Francesco Papadia
    • 1
  • Daniela Porciani
    • 1
  1. 1.Banca d’ItaliaRomaItaly

Personalised recommendations