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The pitfalls of transition: Crowding out the "National Virtues"

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  • Miljkovic, Dragan

Abstract

In this paper a view is advanced that explains why the transition to markets did not always lead to the outcomes predicted by the Washington Consensus type strategies. Institutional portfolio theory is used to define a myriad of interests and goals of a transition economy. A model is developed in which external intervention and increased external monitoring are shown to lead to lessening of the intrinsic motivation within transition economies to pursue the reforms as prescribed by Washington Consensus sometimes resulting in very slow growth rates or even a decline of the GDP.

Suggested Citation

  • Miljkovic, Dragan, 2008. "The pitfalls of transition: Crowding out the "National Virtues"," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2107-2113, October.
  • Handle: RePEc:eee:soceco:v:37:y:2008:i:5:p:2107-2113
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    More about this item

    Keywords

    Economic transition External monitoring Institutional portfolio theory Washington Consensus;

    JEL classification:

    • P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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