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Economic freedom as driver of growth in transition

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  • Pääkkönen, Jenni
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    Abstract

    This paper reviews the political economy of economic growth in post-communist economies making the transition to free markets, focusing on the role of economic policy and institutions. We test the hypothesis that better institutions, measured in terms of economic freedom, contribute to growth. To begin with, the empirical results from the cross-section of transition economies confirm this hypothesis. Yet the question is deeper than that since there is an interactive effect between economic freedom and investment. The paper concludes that non-linearities are present in the growth model.

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    File URL: http://www.sciencedirect.com/science/article/B6W8Y-4YRPDPC-1/2/1987dc1336907f8167681864a5de1be0
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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Systems.

    Volume (Year): 34 (2010)
    Issue (Month): 4 (December)
    Pages: 469-479

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    Handle: RePEc:eee:ecosys:v:34:y:2010:i:4:p:469-479

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    Related research

    Keywords: Growth Institutions Dynamic GMM;

    References

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    1. Feige, Edgar L. & Urban, Ivica, 2008. "Measuring underground (unobserved, non-observed, unrecorded) economies in transition countries: Can we trust GDP?," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 287-306, June.
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      • Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677 Elsevier.
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    22. Brunt, Liam, 2007. "Property Rights and Economic Growth: Evidence from a Natural Experiment," CEPR Discussion Papers 6404, C.E.P.R. Discussion Papers.
    23. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
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    Cited by:
    1. 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.

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