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Growth Recovery in CIS Countries: The Sufficient Minimum Threshold of Reforms

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  • Oleh Havrylyshyn

    (Centre for European, Russian and Eurasian Studies, University of Toronto, 1 Devonshire Place, Toronto, Ontario, Canada M5S 3K7.)

Abstract

Econometrics of transition growth showed that Central Europe recovered earlier because stabilisation, liberalisation and institutions came earlier. Commonwealth of Independent States (CIS) still lag on reforms, and yet growth surged after 2000. This paper shows that the puzzle is only partly explained by energy prices; thus a new question is asked: was there some threshold of reforms sufficient to re-start growth? Indeed, the CIS reached in 2000 the same threshold Central Europe had prior to recovery. Exploring the surprisingly low threshold level of institutions reveals two important insights: institutions lagged well behind liberalisation everywhere; there is not a single country with institutions moving faster than liberalisation. Comparative Economic Studies (2008) 50, 53–78. doi:10.1057/ces.2008.5

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  • Oleh Havrylyshyn, 2008. "Growth Recovery in CIS Countries: The Sufficient Minimum Threshold of Reforms," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 50(1), pages 53-78, March.
    • Handle: RePEc:pal:compes:v:50:y:2008:i:1:p:53-78
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    3. Csaba, László, 2009. "A szovjetológiától az új intézményi közgazdaságtanig - töprengések két évtized távlatából [From Sovietology to the new institutional economics - meditations from a distance of two decades]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 749-768.
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    5. Kravtsova, Victoria & Radosevic, Slavo, 2012. "Are systems of innovation in Eastern Europe efficient?," Economic Systems, Elsevier, vol. 36(1), pages 109-126.
    6. Luca Barbone & Mikhail Bonch-Osmolovskiyi & Matthias Luecke, 2013. "Labour Migration from the Eastern Partnership Countries: Evolution and Policy Options for Better Outcomes," CASE Network Reports 0113, CASE-Center for Social and Economic Research.

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