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Convergence in Output in Transition Economies: Central and Eastern Europe, 1970-1995

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Author Info
Estrin, Saul
Urga, Giovanni

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Abstract

In this paper we use unit roots/cointegration analysis and time-varying parameters procedures to test for a common growth path in the ex-communist block, both pre- and post-reform. We test whether there has been convergence within the block and between the block as a group and the West. Surprisingly, there is little evidence of convergence within the communist block, which brings into question the effectiveness of policies to reduce differentials in income per capita across the region under the communists. There is also little evidence of convergence with respect to the West, for the 1970–90 period and when the early years of reform are included (1970–95).

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1616.

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Date of creation: Apr 1997
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Handle: RePEc:cpr:ceprdp:1616

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Related research
Keywords: Growth Models; Kalman Filter; Time Series Test; Transition Economies; Unit Roots;

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Find related papers by JEL classification:
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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  1. Wagner, Martin & Hlouskova, Jaroslava, 2001. "The CEEC10's Real Convergence Prospects," Transition Economics Series 20, Institute for Advanced Studies. [Downloadable!]
    Other versions:
  2. Joan Costa Font & Joan Batalla Bejerano, 1998. "Eastern European Countries and the EMU: departure situation and transition strategies," ERSA conference papers ersa98p192, European Regional Science Association. [Downloadable!]
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