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Building institutions for growth and human developement : an economic perspective applied to transitional countries of Europe and CIS

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Author Info
Zeghni, Sylvain
Fabry, Nathalie

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Abstract

The collapse of the communist system during the late 1980’s redefined the hierarchy among Central and Eastern European Countries (CEECs) and the former USSR. Some of these countries joined the EU ; some did not ; others formed the CIS . In particular, institutions, mainly market and political one, appear to be a strong foundation for a rapid but irreversible shift from socialism to market-oriented economy. The relationship between economic performance and the quality of domestic institutions has emerged recently as a major subject of interest. The literature shows that the higher the quality of domestic institutions the better the effects on the Human development and growth of a country. The aim of this paper is to analyse in a more qualitative way the role of institutions in transitional countries in the CEECs and CIS. The main question we address is: what kind of institutional arrangement leads to Human development? We propose an analytical pattern where global performance (i.e. Human development) is the final outcome of a new institutional arrangement.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9235.

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Date of creation: May 2008
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Handle: RePEc:pra:mprapa:9235

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Related research
Keywords: Transition; CIS; Institutions; Human Development; Growth;

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Find related papers by JEL classification:
P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health, Education, Welfare, and Poverty
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects

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  8. Yi Wu & Elina Ribakova & Dimitri G. Demekas & Balázs Horváth, 2005. "Foreign Direct Investment in Southeastern Europe: How (and How Much) Can Policies Help?," IMF Working Papers 05/110, International Monetary Fund. [Downloadable!]
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  13. Pranab Bardhan, 2005. "Institutions matter, but which ones?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(3), pages 499-532, 07. [Downloadable!] (restricted)
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  15. Pasquale Tridico, 2006. "Institutional change and human development in transition economies," Departmental Working Papers of Economics - University 'Roma Tre' 0059, Department of Economics - University Roma Tre. [Downloadable!]
  16. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal Of Fortune: Geography And Institutions In The Making Of The Modern World Income Distribution," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1231-1294, November. [Downloadable!] (restricted)
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