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Did growth and reforms increase citizens' support for the transition?

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  • Golinelli, Roberto
  • Rovelli, Riccardo

Abstract

How did post-communist transformations affect people's perceptions of their economic and political systems? We model a pseudo-panel with 89 country-year clusters, based on the aggregation of about eighty thousand interviews conducted in 14 countries between 1991 and 2004, to identify the macro and institutional drivers of the public opinion. We find that: (i) When the economy is growing, on average people appreciate more extensive reforms and dislike unbalanced reforms. They dislike reforms when they are associated with higher unemployment. (ii) Nostalgia for the past regime increases when worsening income distribution or higher inflation interact with more privatizations of state enteprises. (iii) Cross-country differences in the attitudes towards the present and future are largely explained by differences in the institutional indicators for the rule of law and corruption. (iv) Cross-country differences in the extent of nostalgia towards the past are related to differences in the deterioration of standards of living.

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  • Golinelli, Roberto & Rovelli, Riccardo, 2013. "Did growth and reforms increase citizens' support for the transition?," European Journal of Political Economy, Elsevier, vol. 30(C), pages 112-137.
  • Handle: RePEc:eee:poleco:v:30:y:2013:i:c:p:112-137
    DOI: 10.1016/j.ejpoleco.2013.01.004
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    2. Friedrichsen, Jana & Zahn, Philipp, 2014. "Political support in hard times: Do people care about national welfare?," European Journal of Political Economy, Elsevier, vol. 35(C), pages 23-37.
    3. Rieth, Malte & Wittich, Jana, 2020. "The impact of ECB policy on structural reforms," European Economic Review, Elsevier, vol. 122(C).
    4. Nikolova, Milena, 2016. "Minding the happiness gap: Political institutions and perceived quality of life in transition," European Journal of Political Economy, Elsevier, vol. 45(S), pages 129-148.
    5. Rieth, Malte & Wittich, Jana, 2020. "The impact of ECB policy on structural reforms," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics.
    6. Sergei Guriev & Ekaterina Zhuravskaya, 2009. "(Un)happiness in Transition," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 143-168, Spring.
    7. Sirovátka, Tomáš & Guzi, Martin & Saxonberg, Steve, 2019. "Support for Market Economy Principles in European Post-Communist Countries during 1999–2008," MPRA Paper 97585, University Library of Munich, Germany.
    8. Romain Duval & Davide Furceri & Jakob Miethe, 2021. "Robust political economy correlates of major product and labor market reforms in advanced economies: Evidence from BAMLE for logit models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(1), pages 98-124, January.
    9. Agnello, Luca & Castro, Vitor & Jalles, João Tovar & Sousa, Ricardo M., 2015. "What determines the likelihood of structural reforms?," European Journal of Political Economy, Elsevier, vol. 37(C), pages 129-145.
    10. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Aid and institutions in transition economies," European Journal of Political Economy, Elsevier, vol. 38(C), pages 55-70.
    11. Irina Denisova, 2016. "Institutions and the support for market reforms," IZA World of Labor, Institute of Labor Economics (IZA), pages 258-258, May.

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    More about this item

    Keywords

    Post-communist transition; Economic reforms; Support for reforms; Public opinion;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P2 - Economic Systems - - Socialist Systems and Transition Economies

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