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From socialism to capitalism: 1989-2007

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  • Kitov, Ivan

Abstract

The transition of former socialist countries to capitalist economic system is modelled for the period between 1989 and 2007. 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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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14914.

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Date of creation: 28 Apr 2009
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Handle: RePEc:pra:mprapa:14914

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Keywords: socialism; capitalism; transition; economic modelling; GDP per capita;

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  1. J. Barkley Rosser, Jr. & Marina Vcherashnaya Rosser, 2004. "Complex Dynamics of Macroeconomic Collapse and Its Aftermath in Transition Economies," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 30(2), pages 207-221, Spring.
  2. Brada, Josef C & King, Arthur E, 1992. " Is There a J-Curve for the Economic Transition from Socialism to Capitalism?," Economic Change and Restructuring, Springer, Springer, vol. 25(1), pages 37-53.
  3. Biegelbauer, Peter, 1996. "Realizing Hungary's Potential - The Country's Industrial R&D System in Transition," East European Series, Institute for Advanced Studies 32, Institute for Advanced Studies.
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