The Two Transitions in Central and Eastern Europe and the Relation between Path Dependent and Politically Implemented Institutional Change
AbstractThe increasing gap between the formerly socialist countries of Central and Eastern Europe (CE & EE) with regard to both their economic and political performance cannot be explained by their different starting conditions after the breakdown of the Soviet Union alone. Rather, it is due to cultural and historical circumstances that shape the particular tradition and societal environment. Taking a cultural approach and referring to the newer literature on the transfer of institutions, we try to improve the understanding of the interrelation between formal and informal institutions. Our central thesis is that the ?reaction rate? of informal institutions depends on their compatibility with imported formal institutions. The transition processes in CE & EE can tell us much about the relation between path dependent and politically implemented institutional change. During the 20th century the countries of CE & EE twice went through rapid institutional change: For centuries they had acculturated to Western Europe, but as a result of the October Revolution ?Eastern? patterns were imposed upon them. Since the breakdown of the SU in the late 1980s they have ?returned to Europe? by (re-)establishing democracy and capitalism. In our opinion, to understand the differences in performance between the transition countries, it is necessary to interpret both transitions as processes of institutional transplantation and ask how the informal institutional settings in the different countries interacted with the imported formal institutions. --
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 Hamburg Institute of International Economics (HWWA) in its series HWWA Discussion Papers with number 314.
Date of creation: 2005
Date of revision:
Contact details of provider:
Postal: Neuer Jungfernstieg 21, D-20347 Hamburg
Web page: http://www.econstor.eu/handle/10419/20
More information through EDIRC
Cultural Economics; Institutions; Transition; Path Dependence;
Find related papers by JEL classification:
- P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
- Z10 - Other Special Topics - - Cultural Economics - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ivan T. Berend, 2000. "The Failure of Economic Nationalism. Central and Eastern Europe Before World War II," Revue Économique, Programme National Persée, Programme National Persée, vol. 51(2), pages 315-322.
- Djankov, Simeon & Glaeser, Edward L & López-de-Silanes, Florencio & Shleifer, Andrei, 2003.
"The New Comparative Economics,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
3882, C.E.P.R. Discussion Papers.
- Simeon Djankov & Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2003. "The New Comparative Economics," NBER Working Papers 9608, National Bureau of Economic Research, Inc.
- Djankov, Simeon & Glaeser, Edward & La Porta, Rafael & Lopez de Silanes, Florencio & Shleifer, Andrei, 2003. "The new comparative economics," Policy Research Working Paper Series 3054, The World Bank.
- Andrei Shleifer & Simeon Djankov & Edward L. Glaeser & Rafael La Porta & Florencio Lopez de Silanes, 2003. "The New Comparative Economics," Yale School of Management Working Papers, Yale School of Management ysm355, Yale School of Management.
- Simeon Djankov & Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2003. "The New Comparative Economics," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 2002, Harvard - Institute of Economic Research.
- D. Stark, 1996. "Recombinant Property in East European Capitalism," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 6.
- Arthur T. Denzau & Douglass C. North, 1993.
"Shared Mental Models: Ideologies and Institutions,"
Economic History, EconWPA
- G�rard Roland, 2002. "The Political Economy of Transition," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(1), pages 29-50, Winter.
- Kenneth Arrow, 2000. "Increasing returns: historiographic issues and path dependence," The European Journal of the History of Economic Thought, Taylor & Francis Journals, Taylor & Francis Journals, vol. 7(2), pages 171-180.
- Polterovich, Victor, 2007. "Institutional Trap," MPRA Paper 20595, University Library of Munich, Germany.
- North, Douglass C, 1994.
"Economic Performance through Time,"
American Economic Review, American Economic Association,
American Economic Association, vol. 84(3), pages 359-68, June.
- North, Douglass C., 1993. "Economic Performance through Time," Nobel Prize in Economics documents, Nobel Prize Committee 1993-2, Nobel Prize Committee.
- A. Oleynik., 2003. "The Model of Network Capitalism," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
- Laidler, David & Rowe, Nicholas, 1980. "Georg Simmel's Philosophy of Money: A Review Article for Economists," Journal of Economic Literature, American Economic Association, vol. 18(1), pages 97-105, March.
- Zeghni, Sylvain & Fabry, Nathalie, 2008. "Building institutions for growth and human developement : an economic perspective applied to transitional countries of Europe and CIS," MPRA Paper 9235, University Library of Munich, Germany.
- Luděk Kouba, 2009. "The Proposal of Original Classification of Contemporary Social-Economic Approaches to the Growth Theory," Politická ekonomie, University of Economics, Prague, University of Economics, Prague, vol. 2009(5), pages 696-713.
- Nikolay Nenovsky, 2006. "New View of Contemporary Europe," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 107-110.
- Zeghni, Sylvain & Fabry, Nathalie, 2008. "Building institutions for growth and human development: an economic perspective applied to the transitional countries of Europe and CIS," MPRA Paper 9171, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.