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The Meaning and Measurement of Transition

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Abstract

Chapter 1 introduces the reader to the characteristics of economic transition. We explain transition as a fundamental change in institutions, and show that progress in transition has been made above all in changing formal institutions; the transformation of informal institutions, however, still lags behind. Corruption, little interpersonal trust and trust in public institutions cause high forgone gains in income generation, employment, and equity. We further evaluate the achievements of institutional changes in terms of sustainable and equitable economic development, and compare expected with actual results. We find that differences between the Chinese transition and transition in Russia and other CEE countries can be explained by country-specific institutional arrangements.

Keywords

  • Social Capital
  • Gross Domestic Product
  • Market Economy
  • Gini Coefficient
  • Economic Transition

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© 2006 Hubert Gabrisch and Jens Hölscher

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Gabrisch, H., Hölscher, J. (2006). The Meaning and Measurement of Transition. In: The Successes and Failures of Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9780230626584_2

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