IDEAS home Printed from https://ideas.repec.org/a/taf/jpolrf/v18y2015i2p131-152.html
   My bibliography  Save this article

Technology choices and growth: testing New Structural Economics in Transition Economies

Author

Listed:
  • Randolph Luca Bruno
  • Elodie Douarin
  • Julia Korosteleva
  • Slavo Radosevic

Abstract

We explore the relationship between development policies, finance and growth as approached by New Structural Economics (NSE) with special reference to Transition Economies (TEs). On a sample of 164 economies for 1963-2009, our analysis confirms NSE propositions that the type of development policies, as captured by the Technology Choice Index (TCI), has a significant effect on long-term growth. However, this differs for TEs as a whole and its subgroups. Further to this, using a sample of 94 countries for 1985-2009, we provide a first empirical test of the relationship between growth, TCI and financial structure distortions and we show that there is a negative relationship between financial distortions and TCI on the one hand and medium-term growth on the other hand. We also find that the negative effect of a higher ratio of TCI on medium-term growth is partly mitigated, although not eliminated, by moderate level of financial sector distortions. This points towards some positive externalities of simultaneous financial and industrial sector distortions, at least in the medium run. However, TEs are shown to differ from the rest of the sample as financial distortions play a more pronounced direct negative effect on medium-term growth in these countries.

Suggested Citation

  • Randolph Luca Bruno & Elodie Douarin & Julia Korosteleva & Slavo Radosevic, 2015. "Technology choices and growth: testing New Structural Economics in Transition Economies," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 18(2), pages 131-152, June.
  • Handle: RePEc:taf:jpolrf:v:18:y:2015:i:2:p:131-152
    DOI: 10.1080/17487870.2015.1013541
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17487870.2015.1013541
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tregenna, Fiona, 2011. "Manufacturing Productivity, Deindustrialization, and Reindustrialization," WIDER Working Paper Series 057, World Institute for Development Economic Research (UNU-WIDER).
    2. Slavo Radosevic, 1999. "International Technology Transfer and Catch-Up in Economic Development," Books, Edward Elgar Publishing, number 1386.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpolrf:v:18:y:2015:i:2:p:131-152. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GPRE19 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.