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New structural economics meets European transition


  • Erik Berglof


This paper explores whether new structural economics, and more broadly Structuralist approaches, could add to our understanding of transition in Central and Eastern Europe - and ultimately asks whether new structural economics and transition economics might be extended or integrated into a dynamic model of structural transformation that could better account for this particular development experience and provide policy guidance for the future. We have presented three perspectives - new structural economics, transition economics and the Neo-Schumpetarian approach - all of them emphasising different aspects of structural transformation. Their relative explanatory power depends on the context - for example, the extent of distortions in the economy, the quality of the institutions and where a country finds itself relative to the world technology frontier - and the questions we are interested in understanding. We suggest that, to date, the Neo-Schumpetarian approach offers the most promising and persuasive story line to think about this difficult challenge.

Suggested Citation

  • Erik Berglof, 2015. "New structural economics meets European transition," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 18(2), pages 114-130, June.
  • Handle: RePEc:taf:jpolrf:v:18:y:2015:i:2:p:114-130
    DOI: 10.1080/17487870.2015.1013543

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    References listed on IDEAS

    1. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x.
    2. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    3. Pauline Grosjean, 2014. "Conflict and Social and Political Preferences: Evidence from World War II and Civil Conflict in 35 European Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(3), pages 424-451, September.
    4. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. World Bank & P.R.C. Development Research Center of the State Council, 2012. "China 2030 : Building a Modern, Harmonious, and Creative High-Income Society [pre-publication version]," World Bank Publications, The World Bank, number 6057.
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