Transition Studies Review

, Volume 20, Issue 2, pp 131–147 | Cite as

Institutional Deterioration in Transition Economies: Playing Follow-the-Leader During the Global Financial Crisis?

World Transition Economy Research

Abstract

Economic transition was a systemic change of institutions from those that facilitated a planned, communist economy to those suitable for a market economy. This paper examines the state of this political and economic institutional development in 28 transition economies, focusing on the global financial crisis years of 2007–2012. According to various metrics of institutions, institutional regression has indeed occurred but has been somewhat localized in the countries of the CIS. However, property rights have regressed in some countries in Central/Southern Europe, while financial sector institutions have uniformly degraded across the entire transition space.

Keywords

Institutions Transition Financial crisis Property rights 

JEL Classification

P30 E02 O43 

References

  1. Angjellari-Dajci F (2005) Output performance, institutions, and structural policy reforms for transition economies. Dissertation Thesis, Kansas State University. http://krex.k-state.edu/dspace/bitstream/2097/86/1/FjorentinaAngjellari-Dajci.pdf. Accessed 05 July 2013
  2. Arellano M, Bover O (1995) Another look at the instrumental variable estimation of error-components models. J Econ 68:29–52Google Scholar
  3. Barro R, Lee J (1994) Losers and winners in economic growth. In: Proceedings of the world bank annual conference on development economics, Washington, pp 267–297Google Scholar
  4. Blundell R, Bond S (1998) Initial conditions and moment restrictions in dynamic panel data models. J Econ 87:115–143Google Scholar
  5. Campos N, Horvath R (2012) Reform redux: measurement, determinants and growth implications. Eur J Polit Econ 28(2):227–237CrossRefGoogle Scholar
  6. Chen J (2012) Does more finance lead to more crises? [online]. Available from: http://www.fisher.osu.edu/~chen_1002/Papers/financial_sector.pdf. Accessed 23 Jan (2013)
  7. Clague C, Keefer P, Knack S, Olson M (1997) Institutions and economic performance: property rights and contract enforcement. In: Clague C (ed) Institutions and economic development. Johns Hopkins Press, BaltimoreGoogle Scholar
  8. Falcetti E, Lysenko T, Sanfey P (2006) Reforms and growth in transition: re-examining the evidence. J Comp Econ 34(3):421–445CrossRefGoogle Scholar
  9. Gourinchas PO, Obstfeld M (2012) Stories of the twentieth century for the twenty-first. Am Econ J 4(1):226–265Google Scholar
  10. Hartwell CA (2013) Institutional barriers in the transition to market: examining performance and divergence in transition economies. Palgrave Macmillan, BasingstokeCrossRefGoogle Scholar
  11. Kołodko G (1999) Ten years of post-socialist transition lessons for policy reform. World Bank Policy Research Working Paper No. 2095 (April)Google Scholar
  12. Murrell P (1992) Evolution in economics and in the economic reform of the centrally-planned economies. In: Clague C, Rausser G (eds) The emergence of market economies in Eastern Europe. Blackwell, CambridgeGoogle Scholar
  13. Murrell P (2005) Institutions and firms in transition economies. In: Ménard C, Shirley M (eds) Handbook of new institutional economics. Springer, New YorkGoogle Scholar

Copyright information

© CEEUN 2013

Authors and Affiliations

  1. 1.Institute for Emerging Market Studies (IEMS)Moscow School of Management-SKOLKOVOMoscowRussia

Personalised recommendations