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Deindustrialisation. Lessons from the StructuralOutcomes of Post-Communist Transition

  • Tomasz Mickiewicz


  • Anna Zalewska


Theoretical and empirical studies show that deindustrialisation, broadly observed in developed countries, is an inherent part of the economic development pattern. However, post-communist countries, while being only middle-income economies, have also experienced deindustrialisation. Building on the model developed by Rowthorn and Wells (1987) we explain this phenomenon and show that there is a strong negative relationship between the magnitude of deindustrialisation and the efficiency and consistency of market reforms. We also demonstrate that reforms of the agricultural sector play a significant role in placing a transition country on a development path that guarantees convergence to EU employment structures.

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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 463.

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Length: 43 pages
Date of creation: 01 Jan 2002
Date of revision:
Handle: RePEc:wdi:papers:2002-463
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  9. Crafts, Nicholas, 1996. "Deindustrialisation and Economic Growth," Economic Journal, Royal Economic Society, vol. 106(434), pages 172-83, January.
  10. Roland Dohrn & Ullrich Heilemann, 1996. "The Chenery hypothesis and structural change in Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 411-425, October.
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  12. de Melo, Martha & Denizer, Cevdet & Gelb, Alan & Tenev, Stoyan, 1997. "Circumstance and choice : the role of initial conditions and policies in transition economies," Policy Research Working Paper Series 1866, The World Bank.
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  15. Ratna Sahay & Jeromin Zettelmeyer & Eduardo Borensztein & Andrew Berg, 1999. "The Evolution of Output in Transition Economies: Explaining the Differences," IMF Working Papers 99/73, International Monetary Fund.
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