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Context is everything : measuring institutional change in transition economies

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  • Campos, Nauro F.

Abstract

The author presents measures with which to map institution building during the transition from centrally planned to market economies. Data collection and indicators are measured in terms of five institutional dimensions of governance: a) accountability; b) quality of the bureaucracy; c) rule of law; d) character of policy-making process; and e) strength of civil society. The author highlights the differences over time and between Central and Eastern European countries and those of the former Soviet Union. In terms of effects of per capita income and school enrollment, he finds the rule of law to be the most important institutional dimension, both for the sample as a whole and for differences between the two regions. In terms of life expectancy, however, the quality of the bureaucracy plays the most crucial role. One important message the author draws from the results is that institutions do change over time and are by no means as immutable as the literature has suggested. The range of feasible policy choices (for changing institutions) may be much wider than is often assumed.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2269.

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Date of creation: 31 Jan 2000
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Handle: RePEc:wbk:wbrwps:2269

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Keywords: Decentralization; Economic Theory&Research; Corruption&Anitcorruption Law; Public Sector Corruption&Anticorruption Measures; Legal Products; Governance Indicators; National Governance; Corruption&Anitcorruption Law; Public Sector Corruption&Anticorruption Measures; Economic Policy; Institutions and Governance;

References

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  1. Isham, Jonathan & Kaufmann, Daniel & Pritchett, Lant H, 1997. "Civil Liberties, Democracy, and the Performance of Government Projects," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(2), pages 219-42, May.
  2. Nauro Campos, 1999. "Back to the Future: The Growth Prospects of Transition Economies Reconsidered," William Davidson Institute Working Papers Series 229, William Davidson Institute at the University of Michigan.
  3. Dethier, Jean-Jacques & Ghanem, Hafez & Zoli, Edda, 1999. "Does democracy facilitate the economic transition : an empirical study of Central and Eastern Europe and the Former Soviet Union," Policy Research Working Paper Series 2194, The World Bank.
  4. repec:fth:eeccou:146 is not listed on IDEAS
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  6. Ball, Richard & Rausser, Gordon, 1995. "Governance structures and the durability of economic reforms: Evidence from inflation stabilizations," World Development, Elsevier, Elsevier, vol. 23(6), pages 897-912, June.
  7. J. Stiglitz, 1999. "Whither Reform? Ten Years of the Transition," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
  8. Campos, Nauro F. & Nugent, Jeffrey B., 1999. "Development Performance and the Institutions of Governance: Evidence from East Asia and Latin America," World Development, Elsevier, Elsevier, vol. 27(3), pages 439-452, March.
  9. repec:dgr:uvatin:2099004 is not listed on IDEAS
  10. Luc Moers, 1999. "How important are Institutions for Growth in Transition Countries?," Tinbergen Institute Discussion Papers 99-004/2, Tinbergen Institute.
  11. Olson, Mancur, Jr & Sarna, Naveen & Swamy, Anand V, 2000. " Governance and Growth: A Simple Hypothesis Explaining Cross-Country Differences in Productivity Growth," Public Choice, Springer, Springer, vol. 102(3-4), pages 341-64, March.
  12. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
  13. Rodrik, Dani, 1999. " Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, Springer, vol. 4(4), pages 385-412, December.
  14. Yifu Lin, Justin & Nugent, Jeffrey B., 1995. "Institutions and economic development," Handbook of Development Economics, Elsevier, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 38, pages 2301-2370 Elsevier.
  15. Mathias Dewatripont & Gérard Roland, 1996. "Transition as a process of large-scale institutional change," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 4(1), pages 1-30, 05.
  16. Brunetti, Aymo & Kisunko, Gregory & Weder, Beatrice, 1997. "Institutions in transition : reliability of rules and economic performance in former Socialist countries," Policy Research Working Paper Series 1809, The World Bank.
  17. Janine Aron, 1997. "Political, economic and social institutions: a review of growth evidence," Economics Series Working Papers WPS/1998-04, University of Oxford, Department of Economics.
  18. repec:fth:oxesaf:98-4 is not listed on IDEAS
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Citations

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Cited by:
  1. Theo Eicher & Till Schreiber, 2006. "Structural Policies and Growth: Time Series Evidence from a Natural Experiment," Working Papers, Department of Economics, College of William and Mary 48, Department of Economics, College of William and Mary.
  2. Yuko Kinoshita & Nauro F. Campos, 2003. "Why Does Fdi Go Where It Goes? New Evidence From The Transition Economies," William Davidson Institute Working Papers Series 2003-573, William Davidson Institute at the University of Michigan.
  3. Vladimir Popov, 2006. "Shock Therapy Versus Gradualism Reconsidered: Lessons From Transition Economies After 15 Years Of Reforms," Working Papers w0068, Center for Economic and Financial Research (CEFIR).
  4. Hainz, Christa, 2003. "Bank competition and credit markets in transition economies," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 223-245, June.
  5. Crafts, Nicholas & Kaiser, Kai, 2004. "Long-term growth prospects in transition economies: a reappraisal," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 15(1), pages 101-118, March.
  6. Marijana Badjun, 2005. "The quality of governance and economic growth in Croatia," Financial Theory and Practice, Institute of Public Finance, Institute of Public Finance, vol. 29(4), pages 279-308.
  7. Ugur, Mehmet, 2010. "Institutions and economic performance: a review of the theory and evidence," MPRA Paper 25909, University Library of Munich, Germany, revised Oct 2010.
  8. Campos, Nauro F & Coricelli, Fabrizio, 2002. "Growth in Transition: What we Know, What we Don't and What we Should," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3246, C.E.P.R. Discussion Papers.
  9. Ichiro Iwasaki, 2004. "Evolution of the Government–Business Relationship and Economic Performance in the Former Soviet States – Order State, Rescue State, Punish State," Economic Change and Restructuring, Springer, Springer, vol. 36(3), pages 223-257, September.
  10. Iwasaki, Ichiro, 2003. "Transition Strategies and Economic Performances in the Former Soviet States: A Comparative Institutional View," Discussion Paper Series, Institute of Economic Research, Hitotsubashi University a433, Institute of Economic Research, Hitotsubashi University.
  11. Kinoshita, Yuko & Campos, Nauro F., 2004. "Estimating the Determinants of Foreign Direct Investment Inflows: How Important are Sampling and Omitted Variable Biases?," BOFIT Discussion Papers, Bank of Finland, Institute for Economies in Transition 10/2004, Bank of Finland, Institute for Economies in Transition.

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