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Different Paths of State Institutions Development – Convergence and Divergence in Post-Socialist Countries

Author

Listed:
  • Bartosz Totleben
  • Dawid Piątek

Abstract

This study analyses the evolution of state institutions in 18 Central and Eastern European countries that have transitioned from authoritarian, centrally planned economies to democratic market economies. The aim is to assess the quality of their state institutions vis-à-vis those of the EU-15 and to evaluate and compare the levels of socio-economic development in countries whose convergences have followed different paths. To this end, an index to assess institutional quality was developed; one that incorporates political freedom, economic freedom, and governance quality. Sigma convergence analysis and cluster analysis were employed to identify paths of convergence and divergence. Estonia and the Czech Republic were shown to have made significant progress, while Russia and Belarus have lagged behind. Each country was assigned to one of five groups on the basis of similar convergence characteristics. Changes in GDP per capita and the HDI within the identified groups were subsequently examined. Despite overall progress, substantial disparities in institutional quality and socio-economic development persist in CEE.

Suggested Citation

  • Bartosz Totleben & Dawid Piątek, 2025. "Different Paths of State Institutions Development – Convergence and Divergence in Post-Socialist Countries," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 107-129.
    • Handle: RePEc:aoq:ekonom:y:2025:i:1:p:107-129
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    References listed on IDEAS

    as
    1. Thorsten Beck & Luc Laeven, 2006. "Institution building and growth in transition economies," Journal of Economic Growth, Springer, vol. 11(2), pages 157-186, June.
    2. Glawe, Linda & Wagner, Helmut, 2021. "Convergence, divergence, or multiple steady states? New evidence on the institutional development within the European Union," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 860-884.
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    More about this item

    Keywords

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    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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