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Globalisation vs internal reforms as factors of inequality in transition economies

  • David Barlow
  • Gianluca Grimalda
  • Elena Meschi

We examine factors of within-country income inequality in transition economies of Central and Eastern Europe and the Commonwealth of Independent States after the breakup of the Soviet Union. Internal reforms dominate globalisation factors in accounting for inequality, with price liberalisation showing the strongest effect. Privatisation measures also show robust effects. We find some evidence that the extent of the private sector magnifies the impact of price liberalisation. The only role for globalisation seems to be to moderate the adverse impact of internal reforms on inequality.

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Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 23 (2009)
Issue (Month): 3 ()
Pages: 265-287

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Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:265-287
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