Growth and Transition
In this chapter, we discuss the link between reforms and economic growth. It is organized as follows. The chapter opens with a discussion of the general results from the existing literature on the long-term determinants of economic growth. From there, we move to the discussion of published empirical results on factors affecting long- (medium-) term growth in transition economies. We then turn to the existing evidence based on panel data and short-term effects. Subsequently, we focus our attention on criticism by Rzońca and Ciżkowicz (2003), who show that some reported results may be spurious, and offer our own illustration of this issue, supporting their argument. Finally, we present some additional new estimations and draw some brief conclusions.
KeywordsTransition Economy Transition Country World Development Indicator Political Freedom Country Fixed Effect
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