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Linkages between Political and Economic Reforms in Post-Communist Countries

Author

Listed:
  • Karsten Staehr

    (Tallinn Technical University and Bank of Estonia)

Abstract

This paper analyses the interaction between the political and economic reforms undertaken in post-communist countries since the early 1990s. The empirical investigation uses panel data from 27 transition countries for the period 1991 to 2005. Democratisation has led to market economic reforms, while the extent of economic reforms has not had any discernable effect on political developments. Macroeconomic performance has had little or no effect on political and economic reforms, while wars and civil strife have held back both kinds of reforms. Initial conditions have played an important role regarding the outcome of the transition: large macroeconomic distortions and a low development level have produced less democratisation and fewer market economic reforms. The prospect of EU membership has reinforced democratisation but has slowed economic reforms in the applicant countries.

Suggested Citation

  • Karsten Staehr, 2006. "Linkages between Political and Economic Reforms in Post-Communist Countries," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 32, pages 113-138.
  • Handle: RePEc:noj:journl:v:32:y:2006:p:113-138
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    Citations

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    Cited by:

    1. Vladimir A. Kozlov & Dina Y. Balalaeva, 2015. "Institutional Deficit and Health Outcomes in Post-Communist States," HSE Working papers WP BRP 25/PS/2015, National Research University Higher School of Economics.
    2. Golinelli, Roberto & Rovelli, Riccardo, 2013. "Did growth and reforms increase citizens' support for the transition?," European Journal of Political Economy, Elsevier, vol. 30(C), pages 112-137.
    3. Karsten Staehr, 2017. "The Choice of Reforms and Economic System in the Baltic States," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(4), pages 498-519, December.
    4. Kozlov, Vladimir A. & Rosenberg, Dina Y., 2018. "Institutional deficit and health outcomes in post-communist states," Economic Systems, Elsevier, vol. 42(1), pages 119-131.
    5. Christian-Lambert Nguena, 2022. "On a comparative analysis of the impact of democracy on regulatory reform," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 19(2), pages 195-225, December.
    6. Hans Pitlik & Björn Frank & Mathias Firchow, 2010. "The demand for transparency: An empirical note," The Review of International Organizations, Springer, vol. 5(2), pages 177-195, June.
    7. Staehr, Karsten & Tamazian, Artur & Vadlamannati, Krishna Chaitanya, 2009. "Political Determinants of Economic Reforms in the Post-Communist Transition Countries," MPRA Paper 15960, University Library of Munich, Germany.
    8. Igor Pelipas & Alexander Chubrik, 2008. "Market Reforms and Growth in Post-socialist Economies: Evidence from Panel Cointegration and Equilibrium Correction Model," William Davidson Institute Working Papers Series wp936, William Davidson Institute at the University of Michigan.
    9. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Aid and institutions in transition economies," European Journal of Political Economy, Elsevier, vol. 38(C), pages 55-70.

    More about this item

    Keywords

    transition; economic reform; political reform;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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