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On Democratization and Economic Conditions in Eastern Europe


Author Info

  • Bernd Hayo

    (University of Bonn and Georgetown University)


The paper empirically investigates whether people's attitude towards the progress in political transformation in Eastern Europe are influenced by economic factors. Thereby it addresses the question of independence between economic and political system. Using a large panel data set, containing about 68000 observations on individuals from 19 countries over 6 years, this question is analyzed in the framework of an appropriately adjusted ordered logit model. It is found that both subjective and objective personal economic experiences, such as the development of the financial situation of the household or its position in the income distribution, as well as objective aggregate data, such as inflation or the private sector share, have a significant influence on people's opinion with respect to progress in democratization. Thus, studies on transition countries should take into account that there appear to be important spill-overs from people's economic experience to their assessment of progress in transforming the political system.

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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0106001.

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Length: 18 pages
Date of creation: 08 Jun 2001
Date of revision:
Handle: RePEc:wpa:wuwpdc:0106001

Note: Type of Document - ; pages: 18; figures: included
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Related research

Keywords: Eastern Europe; Political Economy; Democracy; Transformation;

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  1. Di Tella, R. & MacCulloch, R.J.: Oswald, A.J., 1997. "The Macroeconomics of Happiness," Papers, Centre for Economic Performance & Institute of Economics 19, Centre for Economic Performance & Institute of Economics.
  2. 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.
  3. de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "From plan to market : patterns of transition," Policy Research Working Paper Series 1564, The World Bank.
  4. Fidrmuc, Jan, 2000. "Liberalization, democracy and economic performance during transition," ZEI Working Papers, ZEI - Center for European Integration Studies, University of Bonn B 05-2000, ZEI - Center for European Integration Studies, University of Bonn.
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Cited by:
  1. Jain, Sanjay & Sharun Mukand, 2003. "Public Opinion and the Dynamics of Reform," Royal Economic Society Annual Conference 2003, Royal Economic Society 114, Royal Economic Society.


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