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Economic freedom as a driver for growth in transition

Listed author(s):
  • Pääkkönen, Jenni
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    This paper reviews the political economy view of economic growth in post-communist economies making the transition to free markets, focusing on the role of economic policy and institutions. We test the hypothesis that better institutions, measured in terms of economic freedom, contribute to growth. The empirical results from the cross-section of transition economies confirm this hypothesis. The paper concludes that non-linearities are present in the growth model and that differences arise depending on how economic well-being is defined. JEL Classification: O17, O40, O57. Key Words: growth, institutions, human capital

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    File URL: https://helda.helsinki.fi/bof/bitstream/123456789/8003/1/160989.pdf
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    Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 1/2009.

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    Date of creation: 14 Jan 2009
    Publication status: Published in Published in Economic Systems, Volume 34, Issue 4, December 2010: 469–479
    Handle: RePEc:bof:bofitp:2009_001
    Contact details of provider: Postal:
    Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland

    Phone: + 358 9 183 2268
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    Web page: http://www.bofit.fi/en/
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