Liberalization, democracy and economic performance during transition
AbstractThis paper analyzes the inter-relations between economic and political processes during transition in 25 post-communist countries of Central and Eastern Europe and the former Soviet Union. The main findings are the following: First, economic liberalization generally has positive effect on growth even when controlling for initial conditions. The effect is U-shaped during the contraction and linear during the recovery, but in both periods complete liberalization is superior to no liberalization. Second, democracy has a negative effect on growth during the contraction, whereas its effect appears insignificant during the recovery. Third, economic performance is a strong determinant of support for the reform in elections: support for the reform falls with unemployment and increases with economic growth, output level relative to 1989, and, surprisingly, inflation. Finally, economic liberalization per se increases opposition against the reform, as the costs of the reform apparently go beyond deteriorating economic performance. The level of democracy, in contrast, increases the support for the reform. --
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 ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 05-2000.
Date of creation: 2000
Date of revision:
Democracy; Economic Liberalization; Economic Performance; voting;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
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.:
- Guillermo Calvo & Fabrizio Coricelli, 1992.
"Output Collapse in Eastern Europe - The Role of Credit,"
IMF Working Papers
92/64, International Monetary Fund.
- Guillermo A. Calvo & Fabrizio Coricelli, 1993. "Output Collapse in Eastern Europe: The Role of Credit," IMF Staff Papers, Palgrave Macmillan, vol. 40(1), pages 32-52, March.
- 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.
- Fidrmuc, J., 1998.
"Political Support for Reforms: Economics of Voting in Transition Countries,"
1998-98, Tilburg University, Center for Economic Research.
- Fidrmuc, Jan, 2000. "Political support for reforms: Economics of voting in transition countries," European Economic Review, Elsevier, vol. 44(8), pages 1491-1513, August.
- Campos, Nauro F, 2000.
"Back to the Future: the Growth Prospects of Transition Economies Reconsidered,"
CEPR Discussion Papers
2654, C.E.P.R. Discussion Papers.
- Campos, Nauro F., 2000. "Back to the future: The growth prospects of transition economies reconsidered," ZEI Working Papers B 13-2000, ZEI - Center for European Integration Studies, University of Bonn.
- Nauro F. Campos, 1999. "Back to the Future: The Growth Prospects of Transition Economies Reconsidered," CERGE-EI Working Papers wp146, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- 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.
- Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December.
- 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.
- Nauro F. Campos & Fabrizio Coricelli, 2002.
"Growth in Transition: What We Know, What We Don't, and What We Should,"
William Davidson Institute Working Papers Series
470, William Davidson Institute at the University of Michigan.
- Nauro F. Campos & Abrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 793-836, September.
- Campos, Nauro F & Coricelli, Fabrizio, 2002. "Growth in Transition: What we Know, What we Don't and What we Should," CEPR Discussion Papers 3246, C.E.P.R. Discussion Papers.
- Lundström, Susanna, 2002. "Decomposed Effects of Democracy on Economic Freedom," Working Papers in Economics 74, University of Gothenburg, Department of Economics.
- Bernd Hayo, 2001. "On Democratization and Economic Conditions in Eastern Europe," Development and Comp Systems 0106001, EconWPA.
- Andreas Freytag, 2002. "Accession to EMU and exchange rate policies in Central Europe - decision under institutional constraints," Bank of Estonia Working Papers 2002-1, Bank of Estonia, revised 12 Oct 2002.
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.