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Post-Communist Transition as a Path Break: Comparing Legal Institutional Effects on Economic Growth between Path-Breaking and Path-Drifting Institutional Reforms

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  • Tamilina, Larysa
  • Tamilina, Natalya

Abstract

This article explains the peculiarities of institutional effects on growth rates in post-communist countries. By proposing a certain dependence of the institution-growth nexus on the mode of institutional grafting, the distinction between drift-phase and path-breaking institutional change is introduced. Theoretical juxtapositions show that transition countries’ institutions built through path-breaking institutional reforms differ from those that emerge evolutionarily in the drift phase in a twofold manner in their relationship to growth. Growth rates of their economies are less likely to depend on the quality of legal institutions and are more likely to be a function of the maturity of political institutions. In addition, legal institutional change in the post-communist world is a product of the quality of the political environment to a greater extent than their drift-phase alternatives. These propositions are tested empirically based on a sample of 87 countries derived from the POLITY IV Project's website.

Suggested Citation

  • Tamilina, Larysa & Tamilina, Natalya, 2016. "Post-Communist Transition as a Path Break: Comparing Legal Institutional Effects on Economic Growth between Path-Breaking and Path-Drifting Institutional Reforms," MPRA Paper 75430, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75430
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    More about this item

    Keywords

    Institutional Economics; Formal Institutions; Institutional Change; Post-Communist Transition;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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