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Institutional Quality – Determinant Of Transition Performances In Central And Eastern European Nations

Author

Listed:
  • Ion POHOATA

    („Alexandru Ioan Cuza” University, Faculty of Economics and Business Administration,Iasi, Romania)

  • Oana-Ramona SOCOLIUC

    („Alexandru Ioan Cuza” University, Faculty of Economics and Business Administration, Iasi, Romania)

  • Delia-Elena DIACONAªU

    („Alexandru Ioan Cuza” University, Faculty of Economics and Business Administration, Iasi, Romania)

Abstract

This study attempts to investigate the impact of institutions on the effectiveness of transition results achieved by emerging economies from Central and Eastern Europe. After more than two decades significant economic and social disparities have arisen between these nations. Consequently, the relationship between institutional efficiency and progress is investigated using a multiple linear regression model. Given the Romanian poor transition performances, the purpose of this paper is to highlight that even if Romania had followed a shock therapy, the resultant of institutional interaction at formal-informal level would have been the same. As results emphasize, the inertial character of informal values inherited from the past faded the echo of good formal initiatives. In the light of such circumstances, performances of countries such as Poland or the Czech Republic become not only understandable, but far from being reached in Romania.

Suggested Citation

  • Ion POHOATA & Oana-Ramona SOCOLIUC & Delia-Elena DIACONAªU, 2013. "Institutional Quality – Determinant Of Transition Performances In Central And Eastern European Nations," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 12, pages 21-35, June.
    • Handle: RePEc:aic:revebs:y:2013:i:12:pohoatai
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    References listed on IDEAS

    as
    1. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
    2. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    3. Ms. Beatrice Weder, 2001. "Institutional Reform in Transition Economies: How Far Have they Come," IMF Working Papers 2001/114, International Monetary Fund.
    4. Christian Bjørnskov & Niklas Potrafke, 2011. "Politics and privatization in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(2), pages 201-230, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    emergent economy; transition; formal institutions; informal institutions; path dependence;
    All these keywords.

    JEL classification:

    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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