Path-Dependency of Economic Transition: An Analytical Review

The concept “path dependency†helps understanding the institutional changes and has given a logical basis which explains not convergence of the evolutionary path of transition economies but their diversified path. Based on “the base simplified literature†, in short random sampling papers from the EconLit database through a keyword search that examine the transition economies from the angle of path dependency, this paper empirically investigates the development trends with regard to path dependency arguments in economics of transition, the theoretical trends on which the economics of transition has been discussed and others. As a consequence, the theoretical and empirical characteristics of path dependency arguments in the economics of transition can be elucidated and the paper clarifies that the papers of David Stark has occupied the important position as a source of path dependency approach’s development, through an analysis of encoding a series of literature attributes the degree of support for path dependency, the relevant reasoning factors and other influential factors based on our own methodology. A systematic / analytical review clarifies the following points: support for path dependency has declined in 2000s; while path dependency approach covers all the transition economies, South-East European countries and Russia have comparatively been stronger supporters of path dependency influence than other EU joining East European countries; researches on institutions, regions and local identities have relatively strongly support path dependency arguments