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Modelling The Evolution Of Real Gdp Per Capita During The Transition From A Socialist To Capitalist Economic System

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  • Ivan O. KITOV

Abstract

The transition of former socialist countries to capitalist economic system is modelled. The transition is entirely defined by three empirical parameters and the model describes only the evolution of real GDP per capita since the start of the disintegration of socialism. It is found that the transition has practically finished in many Central and Eastern European countries and their economic evolution is driven by forces associated with capitalist system. In the long run, the future evolution of the former socialist countries has to follow the same path as observed in other developed countries in the past. Even in the case of perfect economic performance, the studied countries will never catch up the most advanced countries. In Russia and some countries of the Former Soviet Union, the transition process has not been completed.

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Bibliographic Info

Article provided by Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.

Volume (Year): 4 (2009)
Issue (Month): 4(10)_Winter2009 ()
Pages: 526-548

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Handle: RePEc:ush:jaessh:v:4:y:2009:i:4(10)_winter2009:p:84

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Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14
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Keywords: socialism; capitalism; transition; economic modelling; GDP per capita;

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