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The relationship between economic growth and the speed of liberalization during transition

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Author Info

  • Berta Heybey
  • Peter Murrell

Abstract

We examine existing results on the effect of speed of liberalization on growth during transition. We highlight methodological problems in existing studies, noting the existence of simultaneity and the use of variables that are not valid measures of the phenomena they supposedly represent. We implement solutions, examining the simultaneous relationship between growth and speed of liberalization. Initial conditions are much more important than policy changes in determining growth performance in the first four years of transition. Growth performance during the early years of transition has a strong effect on liberalization speed.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/13841289908523400
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 3 (1999)
Issue (Month): 2 ()
Pages: 121-137

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Handle: RePEc:taf:jpolrf:v:3:y:1999:i:2:p:121-137

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Related research

Keywords: Transition strategies; Economic growth; Economic reform; Liberalization speed; Eastern Europe; Former Soviet Union;

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