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Context is everything : measuring institutional change in transition economies

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  • Campos, Nauro F.

Abstract

The author presents measures with which to map institution building during the transition from centrally planned to market economies. Data collection and indicators are measured in terms of five institutional dimensions of governance: a) accountability; b) quality of the bureaucracy; c) rule of law; d) character of policy-making process; and e) strength of civil society. The author highlights the differences over time and between Central and Eastern European countries and those of the former Soviet Union. In terms of effects of per capita income and school enrollment, he finds the rule of law to be the most important institutional dimension, both for the sample as a whole and for differences between the two regions. In terms of life expectancy, however, the quality of the bureaucracy plays the most crucial role. One important message the author draws from the results is that institutions do change over time and are by no means as immutable as the literature has suggested. The range of feasible policy choices (for changing institutions) may be much wider than is often assumed.

Suggested Citation

  • Campos, Nauro F., 2000. "Context is everything : measuring institutional change in transition economies," Policy Research Working Paper Series 2269, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2269
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    Cited by:

    1. Marinko Škare & Sanja Radolović & Manuela Tvaronavičienė & Manuela Tvaronavičienė, 2021. "Managing the institutional environment and impact on the competitiveness of transitional economies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 504-526, March.
    2. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    3. Davide Infante & Janna Smirnova, 2010. "Market Failures within Poor Institutions: The Effects of Bureaucrats’ Rent-seeking Activity," Chapters, in: Neri Salvadori (ed.), Institutional and Social Dynamics of Growth and Distribution, chapter 5, Edward Elgar Publishing.
    4. Ugur, Mehmet, 2010. "Institutions and economic performance: a review of the theory and evidence," MPRA Paper 25909, University Library of Munich, Germany, revised Oct 2010.
    5. Emin Efecan Aktas, 2022. "Long-run effects of human development and public governance on economic welfare: New evidence from transition economies," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 40(1), pages 147-175.
    6. Nauro F. Campos & Abrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 793-836, September.
    7. Muhammad Ali Choudhary & Muhammad Nadim Hanif & Sajawal Khan & Muhammad Rehman, 2012. "Procyclical Monetary Policy and Governance," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 8, pages 33-43.
    8. Yuko Kinoshita & Nauro F. Campos, 2003. "Why Does Fdi Go Where it Goes? New Evidence From the Transition Economies," IMF Working Papers 2003/228, International Monetary Fund.
    9. Dawid Piątek & Katarzyna Sarzec, 2009. "Państwo a dobrobyt ekonomiczny - między wolnością a przymusem," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 1-19.
    10. Kinoshita, Yuko & Campos, Nauro F., 2004. "Estimating the determinants of foreign direct investment inflows : how important are sampling and omitted variable biases?," BOFIT Discussion Papers 10/2004, Bank of Finland, Institute for Economies in Transition.
    11. Dawid Piatek, 2016. "Institutions and economic growth in transition countries — new experiences and implications from financial crisis 2007–2010 (Part 1)," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 15(4), pages 515-526, December.
    12. Vladimir Popov, 2006. "Shock Therapy Versus Gradualism Reconsidered: Lessons From Transition Economies After 15 Years Of Reforms," Working Papers w0068, Center for Economic and Financial Research (CEFIR).
    13. Crafts, Nicholas & Kaiser, Kai, 2004. "Long-term growth prospects in transition economies: a reappraisal," Structural Change and Economic Dynamics, Elsevier, vol. 15(1), pages 101-118, March.
    14. repec:zbw:bofitp:2004_010 is not listed on IDEAS
    15. Kinoshita, Yuko & Campos, Nauro F., 2004. "Estimating the determinants of foreign direct investment inflows: how important are sampling and omitted variable biases?," BOFIT Discussion Papers 10/2004, Bank of Finland Institute for Emerging Economies (BOFIT).
    16. Iwasaki, Ichiro & 岩﨑, 一郎 & イワサキ, イチロウ, 2003. "Transition Strategies and Economic Performances in the Former Soviet States: A Comparative Institutional View," Discussion Paper Series a433, Institute of Economic Research, Hitotsubashi University.
    17. Eugeniusz Wojciechowski & Aldona Podgórniak-Krzykacz, 2008. "Pomiar jakości rządzenia," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 19-38.
    18. Jaćimović, Danijela & Karadžić, Vesna & Bošković, Tatjana, 2008. "Quality of governance as measured by World Bank indicators for the region of south-east Europe," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 11(4), pages 485-502.
    19. Hainz, Christa, 2003. "Bank competition and credit markets in transition economies," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 223-245, June.
    20. Ichiro Iwasaki, 2004. "Evolution of the Government–Business Relationship and Economic Performance in the Former Soviet States – Order State, Rescue State, Punish State," Economic Change and Restructuring, Springer, vol. 36(3), pages 223-257, September.
    21. Marijana Badjun, 2005. "The quality of governance and economic growth in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 29(4), pages 279-308.

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