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Divergence in Growth in Post-Communist Countries


  • Katchanovski, Ivan


The paper analyzes the divergence of economic growth in post-communist countries along geographical lines. It examines the role of culture, manifested in the form of civil society, social capital, trust, religious and business ethics, and historical experience, in the economic growth. Multivariate regression, a path (structural equation) model, and sensitivity analysis are used to determine direct and indirect effects of culture, policy, corruption, war, initial economic conditions, and ethnicity on the economic growth in 28 post-communist countries in 1990–1998. The statistical analyses show that a cultural index, which reflects civil society strength, the proportion of Catholics and Protestants in the population and historical experience, has the strongest effect on growth, economic reform, macroeconomic stabilization policy and corruption.

Suggested Citation

  • Katchanovski, Ivan, 2000. "Divergence in Growth in Post-Communist Countries," Journal of Public Policy, Cambridge University Press, vol. 20(1), pages 55-81, April.
  • Handle: RePEc:cup:jnlpup:v:20:y:2000:i:01:p:55-81_00

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    Cited by:

    1. Skaaning, Svend-Erik, 2007. "Explaining post-communist respect for civil liberty: A multi-methods test," Journal of Business Research, Elsevier, vol. 60(5), pages 493-500, May.
    2. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. Ileana Tache & Cristina Neesham, 2009. "The Impact of the Europeanization Process on State-Industry Interaction in Romania," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 17-36.
    4. Daniel Tarka, 2004. "High-growth Micro Enterprises:managing the risk aspects of enterprise growth," Microeconomics 0403004, University Library of Munich, Germany.
    5. Girginov, Vassil & Sandanski, Ivan, 2008. "Understanding the Changing Nature of Sports Organisations in Transforming Societies," Sport Management Review, Elsevier, vol. 11(1), pages 21-50, May.
    6. Geoffrey M. Hodgson, 2006. "Instituciones, recesiones y recuperación en las economías en transición," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 43-68, July-Dece.

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