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Openness and Growth in Central-Eastern European Countries

Author

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  • Rosa Capolupo

    (Dipartimento di Scienze Economiche)

  • Giuseppe Celi

    (Dipartimento di Scienze Economiche)

Abstract

We present evidence of the relationship between trade-openness and growth in the sample of former communist countries before and after the transition from a central planned economy (CPE) to a market economy by applying standard OLS and panel estimation techniques. The main finding is that during the transition the importance of openness on growth per capita has increased sharply by changing the coefficient from a negative sign to a positive and significant one. The result seems to be robust to (i) estimation methods , (ii) different measures of openness adopted and (iii)consistent with the integration view, which states that a higher degree of trade openness spurred by market incentives and comparative advantages enhances the per capita growth rate of economies.

Suggested Citation

  • Rosa Capolupo & Giuseppe Celi, 2005. "Openness and Growth in Central-Eastern European Countries," GE, Growth, Math methods 0506002, EconWPA.
  • Handle: RePEc:wpa:wuwpge:0506002 Note: Type of Document - pdf; pages: 28
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    References listed on IDEAS

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    Cited by:

    1. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Ramona Simut & Ioana Mester, 2014. "An Investigation Of Cointegration And Causality Between Investments, Exports, Openness, Industrial Production And Economic Growth: A Comparative Study For The East European Countries," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 369-378, July.

    More about this item

    Keywords

    economic growth; transition economies; trade openness;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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