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Convergence in Output in Transition Economies Central & Eastern Europe, 1970-1995

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  • Saul Estrin
  • Geovanni Urga

Abstract

In this paper we use unit roots/cointegration analysis and time varying parameters procedure to test for a common growth path in the ex-communist block, both pre- and post-reform. We test whether there has been convergence within the block and between the block as a group and the West. Surprisingly, there is little evidence of convergence within the communist block, which brings into question the effectiveness of policies to reduce differentials in income per capita across the region under the communists. There is also little evidence of convergence with respect to the West, either 1970-1990 or under the early years of reform are included, 1970-1995.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp30.pdf
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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 30.

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Length: pages
Date of creation: 01 Feb 1997
Date of revision:
Handle: RePEc:wdi:papers:1997-30

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Keywords: growth models; transition economies; unit roots; time series test; kalman filter;

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