IDEAS home Printed from
   My bibliography  Save this paper

Institutional change and human development in transition economies


  • Pasquale Tridico


Transition economies (i.e. Central Eastern Europe Countries and Former Soviet Union Republics) have undergone an enormous transformation since 1989-1991. After the recession of the early 1990’s, some of these economies experienced a GDP recovery, at a different pace, with different outcomes in terms of economic growth and social performance (i.e. human development, employment, poverty, etc). The aim of this paper is to answer the following research question: was human development concurrent with economic growth during transition towards the market economy? I claim that economic growth is not always concurrent with human development: economic growth can contribute to increase the level of human development, but is not “the means” to human development. The income is not the final aim. On the contrary, the final aim is the well-being of individuals and the human development. Human development is considered to be a process which allows for an environment where people enjoy long, healthy and creative lives (as defined by the United Nations Development Programme, UNDP). Using an OLS model, human development variables were correlated with GDP per capita. I found out that, in transition economies, investing in human development is a sufficient, yet not a necessary condition for economic growth. GDP growth, then, requires human development. In this context institutions and institutional policies are crucial for a development process. In fact, for better distribution and access to resources as well as for social cohesion, well-designed institutions are needed.

Suggested Citation

  • Pasquale Tridico, 2006. "Institutional change and human development in transition economies," Departmental Working Papers of Economics - University 'Roma Tre' 0059, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0059

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Ronald H. Coase, 2000. "The new institutional economics," Chapters,in: Institutions, Contracts and Organizations, chapter 1 Edward Elgar Publishing.
    2. Alberto Chilosi, 2003. "The Economic System As An End Or As A Means And The Future Of Socialism And Capitalism: An Evolutionary Viewpoint," Development and Comp Systems 0305003, University Library of Munich, Germany, revised 14 Sep 2003.
    3. Naqvi, Syed Nawab Haider, 1995. "The nature of economic development," World Development, Elsevier, vol. 23(4), pages 543-556, April.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Flavian Clipa & Raluca Irina Clipa, 2014. "Between Frailty And Institutional Reform. The Case Of Romania," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6(1), pages 42-54, March.
    2. Ewa Gruszewska, 2014. "Changes In Informal Institutions In Poland And Transition Countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(1), pages 39-55, March.
    3. repec:jes:wpaper:y:2014:v:6:p:42-54 is not listed on IDEAS
    4. Zeghni, Sylvain & Fabry, Nathalie, 2008. "Building institutions for growth and human developement : an economic perspective applied to transitional countries of Europe and CIS," MPRA Paper 9235, University Library of Munich, Germany.
    5. Pasquale Tridico, 2006. "Institutional Change and Governance Indexes in Transition Economies: the case of Poland," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(2), pages 197-238, December.
    6. Zeghni, Sylvain & Fabry, Nathalie, 2008. "Building institutions for growth and human development: an economic perspective applied to the transitional countries of Europe and CIS," MPRA Paper 9171, University Library of Munich, Germany.

    More about this item


    Transition; Development; Institutions;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:rtr:wpaper:0059. 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: (Telephone for information). General contact details of provider: .

    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.