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Socialist growth revisited: insights from Yugoslavia

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  • Leonard Kukić

Abstract

We know little about the performance of socialist European economies. This paper fills the knowledge void by analyzing Yugoslavia using a diagnostic tool that identifies the mechanisms that drive economic growth—business cycle accounting. The analysis provides novel findings. During the “Golden Age” of economic growth, total factor productivity became gradually more important in sustaining economic growth. Distorted labor incentives were a major constraint on growth since the mid-1960s, and explain the slowdown of the economy during the 1980s. In turn, labor incentives were distorted by the greater devolution of power to labor-managed firms.

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  • Leonard Kukić, 2018. "Socialist growth revisited: insights from Yugoslavia," European Review of Economic History, European Historical Economics Society, vol. 22(4), pages 403-429.
    • Handle: RePEc:oup:ereveh:v:22:y:2018:i:4:p:403-429.
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    Cited by:

    1. Leonard Kukić, 2020. "Origins of regional divergence: economic growth in socialist Yugoslavia," Economic History Review, Economic History Society, vol. 73(4), pages 1097-1127, November.
    2. Leonard Kukić, 2021. "The Nature Of Technological Failure: Patterns Of Biased Technical Change In Socialist Europe," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 895-925, July.

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    More about this item

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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