Does democracy facilitate the economic transition : an empirical study of Central and Eastern Europe and the Former Soviet Union
AbstractThe authors analyze whether political freedom and civil liberties help or hinder economic liberalization, using panel data from 25 post-communist countries of Central and Eastern Europe and the former Soviet Union between 1992 and 1997. Building on arguments and counter-arguments put forth in recent literature, they identify the channels through which political freedom affects economic liberalization during the transition. Then they test the arguments empirically with an econometric framework that takes into account possible problems with simultaneity between the economic and political transitions. Their empirical findings clearly reveal that democracy has facilitated economic liberalization in countries of Central and Eastern Europe and the former Soviet Union. This conclusion is confirmed under various model specifications, for both ordinary and two-stage least squares procedures and using two different measures of liberalization. The econometric results reveal that the existence of a vibrant civil society at the start of the transition has the most explanatory power in the author's regressions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2194.
Date of creation: 31 Oct 1999
Date of revision:
Human Rights; Politics and Government; Parliamentary Government; Economic Theory&Research; Decentralization; Politics and Government; National Governance; Economic Conditions and Volatility; Achieving Shared Growth; Human Rights;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Giuliano, Paola & Mishra, Prachi & Spilimbergo, Antonio, 2009.
"Democracy and Reforms,"
CEPR Discussion Papers
7194, C.E.P.R. Discussion Papers.
- Thomas Apolte, .
"Democracy and Prosperity in two Decades of Transition,"
200106, Institute of Spatial and Housing Economics, Munster Universitary.
- Thomas Apolte, 2011. "Democracy and prosperity in two decades of transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(4), pages 693-722, October.
- Apolte, Thomas, 2010. "Democracy and prosperity in two decades of transition," CAWM Discussion Papers 26, Center of Applied Economic Research Münster (CAWM), University of Münster.
- Cristian Dragos & Daniela Beju & Simona Dragos, 2009. "Public and Financial Institutions in Transition Economies: An Overview and Recent Evidences from Central and Eastern Europe," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(2), pages 147-170.
- Frensch, Richard, 2004. "Public governance as the source of quality and variety gains from transition," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 388-408, September.
- Apolte, Thomas & Peters, Heiko, 2009. "Governance, Demokratie und wirtschaftliche Entwicklung in den ehemals sozialistischen Staaten," IÃB-Diskussionspapiere 1/09, University of Münster, Institute for Economic Education.
- Fidrmuc, Jan, 2000. "Liberalization, democracy and economic performance during transition," ZEI Working Papers B 05-2000, ZEI - Center for European Integration Studies, University of Bonn.
- Sudeshna Ghosh Banerjee & Michael C. Munger, 2004. "Move to markets? An empirical analysis of privatization in developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(2), pages 213-240.
- Fidrmuc, Jan, 2003.
"Economic reform, democracy and growth during post-communist transition,"
European Journal of Political Economy,
Elsevier, vol. 19(3), pages 583-604, September.
- Fidrmuc, Jan, 2001. "Economic Reform, Democracy and Growth during Post-Communist Transition," CEPR Discussion Papers 2759, C.E.P.R. Discussion Papers.
- Jan Fidrmuc, 2001. "Economic Reform, Democracy and Growth During Post-Communist Transition," William Davidson Institute Working Papers Series 372, William Davidson Institute at the University of Michigan.
- Narayan, Paresh Kumar & Narayan, Seema & Smyth, Russell, 2011.
"Does democracy facilitate economic growth or does economic growth facilitate democracy? An empirical study of Sub-Saharan Africa,"
Elsevier, vol. 28(3), pages 900-910, May.
- Paresh Narayan & Seema Narayan & Russell Smyth, 2007. "Does Democracy Facilitate Economic Growth Or Does Economic Growth Facilitate Democracy? An Empirical Study Of Sub-Saharan Africa," Monash Economics Working Papers 10-07, Monash University, Department of Economics.
- Campos, Nauro F., 2000. "Context is everything : measuring institutional change in transition economies," Policy Research Working Paper Series 2269, The World Bank.
- de Haan, Jakob & Sturm, Jan-Egbert, 2003. "Does more democracy lead to greater economic freedom? New evidence for developing countries," European Journal of Political Economy, Elsevier, vol. 19(3), pages 547-563, September.
- Marek Dabrowski & Radzislawa Gortat, 2002. "Political Determinants of Economic Reforms in Former Communist Countries," CASE Network Studies and Analyses 0242, CASE-Center for Social and Economic Research.
- Pauline Grosjean & Claudia Senik, 2011.
"Democracy, Market Liberalization and Political Preferences,"
- Pauline Grosjean & Claudia Senik, 2011. "Democracy, Market Liberalization, and Political Preferences," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 365-381, February.
- Fidrmuc, Jan, 2001. "Democracy in transition economies: Grease or sand in the wheels of growth?," ZEI Working Papers B 09-2001, ZEI - Center for European Integration Studies, University of Bonn.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.