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Benchmarking Structural Change in Transition

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  • Martin Raiser
  • Mark Schaffer
  • Johannes Schuchhardt

Abstract

The transition to market-based economic systems in the countries of Central and Eastern Europe and the former Soviet Union involves fundamental shifts in the allocation of resources and deep changes in the structure of production and employment. This paper uses a simple model of economic development and structural change with technology spillovers to benchmark structural change in the transition economies and simulate the path of adjustment from central planning. We then analyse data from 10 accession candidates and 12 CIS countries to measure the progress in structural change that has taken place thus far and to assess the further structural changes that should be expected, with particular attention to the implications for accession.

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File URL: http://www.sml.hw.ac.uk/downloads/cert/wpa/2003/dp0301.pdf
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Bibliographic Info

Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 0301.

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Date of creation: 2003
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Handle: RePEc:hwe:certdp:0301

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Keywords: structural change; transition; adjustment;

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  1. William Easterly & Stanley Fischer, 1994. "The Soviet Economic Decline: Historical and Republican Data," NBER Working Papers 4735, National Bureau of Economic Research, Inc.
  2. Richard Jackman & C Pauna, 1997. "Labour Market Policy and the Reallocation of Labour Across Sectors," CEP Discussion Papers dp0338, Centre for Economic Performance, LSE.
  3. Gomulka, Stanislaw, 1986. "Soviet Growth Slowdown: Duality, Maturity, and Innovation," American Economic Review, American Economic Association, vol. 76(2), pages 170-74, May.
  4. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 1997. "Beyond Balanced Growth," NBER Working Papers 6159, National Bureau of Economic Research, Inc.
  5. Roland Dohrn & Ullrich Heilemann, 1996. "The Chenery hypothesis and structural change in Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 411-425, October.
  6. Antonio Spilimbergo, 1995. "De-Industrialization and Trade," Research Department Publications 4014, Inter-American Development Bank, Research Department.
  7. Hélène Poirson, 2000. "Factor Reallocation and Growth in Developing Countries," IMF Working Papers 00/94, International Monetary Fund.
  8. International Monetary Fund, 2000. "The Great Contractions in Russia, the Baltics and the Other Countries of the Former Soviet Union," IMF Working Papers 00/32, International Monetary Fund.
  9. Bryan W. Roberts, 1997. "Welfare change and the elimination of the shortage economy in Russia: some representative-household results," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(2), pages 427-451, November.
  10. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
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