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Institution building and growth in transition economies

Journal of Economic Growth volume 11, pages 157–186 (2006)Cite this article

Abstract

Drawing on the recent literature on economic institutions and the origins of economic development, we offer a political economy explanation of why institution building has varied so much across transition economies. We identify dependence on natural resources and the historical experience of these countries during socialism as major determinants of institution building during transition. Using natural resource reliance and the years under socialism to extract the exogenous component of institution building, we also show the importance of institutions in explaining the variation in economic development and growth across transition economies during the first decade of transition.

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Authors and Affiliations

  1. The World Bank, 1818 H St., NW, Washington, DC, 20433, USA

    Thorsten Beck

  2. International Monetary Fund, Washington, DC, 20431, USA

    Luc Laeven

  3. CEPR, London, UK

    Luc Laeven

Authors
  1. Thorsten Beck
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  2. Luc Laeven
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Beck, T., Laeven, L. Institution building and growth in transition economies. J Econ Growth 11, 157–186 (2006). https://doi.org/10.1007/s10887-006-9000-0

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  • DOI: https://doi.org/10.1007/s10887-006-9000-0

Keywords

  • Transition economies
  • Institutions
  • Economic development

JEL Classifications

  • O10
  • P20