IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/1976.html
   My bibliography  Save this paper

Large-scale transition of economic systems: Do CEECs converge towards Western prototypes?

Author

Listed:
  • Ahlborn, Markus
  • Ahrens, Joachim
  • Schweickert, Rainer

Abstract

In order to identify convergence patterns among the group of Central and Eastern European Countries (CEECs) we analyze clusters of traditional OECD countries, i.e. EU-15 plus Norway and Switzerland, Anglo-Saxon non-EU countries plus Japan, and CEECs based on macro data on government regulation and spending instead of micro data on firm relations and market characteristics as is usually applied in Varieties-of-Capitalism (VoC) analysis. This framework is supposed to incorporate some of the critique that has been expressed towards the traditional VoC-approach, especially its ignorance of government spending and performance. We acknowledge for the transition aspect by looking at cluster history and principal component analysis for periods of transition. Our analysis reveals that there is consolidation rather than convergence with CEECs being divided in clusters leaning towards CME and LME prototypes respectively. Overall, there are worlds of redistribution within which clusters differ with respect to their mix of - negatively correlated - regulation and innovation. Interestingly, CEECs do not mix up with Mediterranean MMEs, which indeed provide a kind of worst case setting, while Scandinavian CMEs as well as traditional LMEs provide a kind of role model within their respective worlds of redistribution.

Suggested Citation

  • Ahlborn, Markus & Ahrens, Joachim & Schweickert, Rainer, 2014. "Large-scale transition of economic systems: Do CEECs converge towards Western prototypes?," Kiel Working Papers 1976, Kiel Institute for the World Economy (IfW).
    • Handle: RePEc:zbw:ifwkwp:1976
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/104971/1/810622661.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Federico Foders & Daniel Piazolo & Rainer Schweickert, 2002. "Ready to Join the EU?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 3(4), pages 43-72, October.
    2. Pryor, Frederic L., 2005. "Market economic systems," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 25-46, March.
    3. Acemoglu, Daron & Robinson, James A & Verdier, Thierry, 2012. "Can't We All Be More Like Scandinavians? Asymmetric Growth and Institutions in an Interdependent World," CEPR Discussion Papers 9113, C.E.P.R. Discussion Papers.
    4. Frederic L Pryor, 2006. "Economic Systems of Developing Nations," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(1), pages 77-99, March.
    5. Beata Farkas, 2011. "The Central and Eastern European model of capitalism," Post-Communist Economies, Taylor & Francis Journals, vol. 23(1), pages 15-34.
    6. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    7. Amable, Bruno & Azizi, Karim, 2011. "Varieties of capitalism and varieties of macroeconomic policy. Are some economies more procyclical than others?," MPIfG Discussion Paper 11/6, Max Planck Institute for the Study of Societies.
    8. Ahlquist, John S. & Breunig, Christian, 2009. "Country clustering in comparative political economy," MPIfG Discussion Paper 09/5, Max Planck Institute for the Study of Societies.
    9. McMENAMIN, IAIN, 2004. "Varieties of Capitalist Democracy: What Difference Does East-Central Europe Make?," Journal of Public Policy, Cambridge University Press, vol. 24(03), pages 259-274, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Wrobel, Ralph, 2015. "From independence to the Euro introduction: varieties of capitalism in the Baltic States," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 9-38.
    2. Markus Ahlborn & Rainer Schweickert, 2018. "Public debt and economic growth – economic systems matter," International Economics and Economic Policy, Springer, vol. 15(2), pages 373-403, April.
    3. Ahlborn, Markus & Schweickert, Rainer, 2017. "Economic systems in developing countries: A macro cluster approach," PFH Forschungspapiere/Research Papers 2017/01, PFH Private University of Applied Sciences, Göttingen.
    4. Esther Ademmer & Joscha Beckmann & Rainer Schweickert, 2014. "Large-scale Transformations of Socio-economic Institutions," WWWforEurope Working Papers series 75, WWWforEurope.

    More about this item

    Keywords

    Varieties of Capitalism; Worlds of Welfare States; Government Spending; Regulation; Cluster Analysis; Transition; Economic Systems; CEECs;

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • P10 - Economic Systems - - Capitalist Systems - - - General
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

    Statistics

    Access and download statistics

    Corrections

    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:zbw:ifwkwp:1976. 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: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/iwkiede.html .

    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.