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Transition Strategies and Economic Performances in the Former Soviet States: A Comparative Institutional View

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Author Info
Ichiro Iwasaki
Abstract

The objective of this paper is to elucidate the relationship between the reform process and economic performance in the states of the former Soviet Union (FSU). There were two strategies used by the former Soviet states to cope with the collapse of the USSR. Some of the FSU countries, in an effort to overcome the institutional vacuum caused by the disintegration of the federal economy, centralized their government authority to manage industry. Others decentralized power in an attempt to regain economic independence for domestic enterprises. To evaluate the essential differences and progress gaps among transition strategies, FSU countries can be divided into three groups, which reflect variations in institutional control of the government-business relationships. The differences in economic performance in FSU countries can be explained to some extent by examining the diversity of institutional patterns that characterize each category. The results of various empirical analyses positively support the validity of such an analytical framework. In this sense, this paper presents a new viewpoint on the transition process in FSU countries that may complement that shown in existing literature.

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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number a433.

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Date of creation: Jan 2003
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Handle: RePEc:hit:hituec:a433

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Related research
Keywords: transition; government-business relationship; the Former Soviet Union;

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Find related papers by JEL classification:
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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  1. Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," IMF Working Papers 00/30, International Monetary Fund.
  2. Fischer, Stanley & Sahay, Ratna & Vegh, Carlos A, 1996. "Stabilization and Growth in Transition Economies: The Early Experience," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 45-66, Spring. [Downloadable!] (restricted)
    Other versions:
  3. Kornai Janos, 1994. "Transformational Recession: The Main Causes," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 39-63, August. [Downloadable!] (restricted)
  4. Ernesto Hernández-Catá, 1997. "Liberalization and the Behavior of Output During the Transition from Plan to Market," IMF Working Papers 97/53, International Monetary Fund.
  5. Oleh Havrylyshyn, 2001. "Recovery and Growth in Transition: A Decade of Evidence," IMF Staff Papers, Palgrave Macmillan Journals, vol. 48(4), pages 4. [Downloadable!] (restricted)
  6. Nada Mora & Pietro Garibaldi & Ratna Sahay & Jeromin Zettelmeyer, 2002. "What Moves Capital to Transition Economies?," IMF Working Papers 02/64, International Monetary Fund.
    Other versions:
  7. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    Other versions:
  8. Aoki Masahiko, 1995. "An Evolving Diversity of Organizational Mode and Its Implications for Transitional Economies," Journal of the Japanese and International Economies, Elsevier, vol. 9(4), pages 330-353, December. [Downloadable!] (restricted)
  9. Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series 470, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  10. de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "Patterns of Transition from Plan to Market," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 397-424, September.
  11. Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," NBER Working Papers 7664, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Eduardo Borensztein & Ratna Sahay & Jeromin Zettelmeyer & Andrew Berg, 1999. "The Evolution of Output in Transition Economies - Explaining the Differences," IMF Working Papers 99/73, International Monetary Fund.
  13. Peter Christoffersen & Peter Doyle, 2000. "From Inflation to Growth," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 421-451, July. [Downloadable!] (restricted)
  14. Campos, Nauro F., 2000. "Context is everything : measuring institutional change in transition economies," Policy Research Working Paper Series 2269, The World Bank. [Downloadable!]
  15. Brunetti, Aymo & Kisunko, Gregory & Weder, Beatrice, 1997. "Institutions in transition : reliability of rules and economic performance in former Socialist countries," Policy Research Working Paper Series 1809, The World Bank. [Downloadable!]
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