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Do Transition Economies and Developing Countries Have Similar Destinies?

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  • Kanybek Nur-tegin

Abstract

This paper evaluates the potential of transition economies for achieving sustainable improvements in living standards vis-à-vis developing countries based on their productivity performance. The comparison is made using a bootstrapped Malmquist productivity index and its technological and efficiency change components. The results of estimation indicate that transition economies enjoy significantly higher increases in technical efficiency than developing countries with comparable rates of real GDP growth. Therefore, these results suggest that the former group of countries may have better growth prospects than the latter group, giving empirical support to Stern and Fries’ (Foreign Policy 111:164–165, 1998) optimism that transition economies are the “tiger” economies of tomorrow. Copyright International Atlantic Economic Society 2007

Suggested Citation

  • Kanybek Nur-tegin, 2007. "Do Transition Economies and Developing Countries Have Similar Destinies?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(3), pages 327-342, September.
    • Handle: RePEc:kap:atlecj:v:35:y:2007:i:3:p:327-342
    DOI: 10.1007/s11293-007-9073-y
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    More about this item

    Keywords

    Transition economies; LDCs; Malmquist; Productivity; Bootstrap; Growth; O47; O57; P27;
    All these keywords.

    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
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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