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The "new economy" and catching-up potential of transition economies

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  • Marcin Piatkowski

Abstract

The contribution of the 'new economy' to economic growth in developing countries has so far been minimal. The 'old economy' will for long be the fundamental force behind economic growth in transition economies. Nonetheless, in the longer run the 'new economy' offers great potential for faster economic growth in post-socialist economies. Realizing this potential is, however, not automatic. It can be left unharnessed if there is no suitable institutional infrastructure, which would allow for adoption, diffusion, and productive use of information and communication technologies (ICT). The paper introduces a New Economy Indicator (NEI) measuring the level of preparedness of transition economies for harnessing the potential of ICT to accelerate the long-term economic growth and catching-up with developed countries. In the NEI ranking Slovenia scored the highest, followed by the Czech Republic and Hungary, Albania, Bosnia and Herzegovina, while Yugoslavia occupy the bottom of the table.

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Bibliographic Info

Article provided by University of Economics, Prague in its journal Prague Economic Papers.

Volume (Year): 2003 (2003)
Issue (Month): 1 ()
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Handle: RePEc:prg:jnlpep:v:2003:y:2003:i:1:id:205

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Related research

Keywords: economic growth; post-communist transition; new economy; information and communication technologies;

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