Reforms and economic growth in transition economies

Growth regressions have presented important awarenesses into the impact of economic reforms on growth in transition economies. Utilizing principal components to break down reform variables and construct reform clusters, we address unsettled issues specifically the importance of sequencing and reform pace. The results indicate a broad-based reform policy is good for growth, but so is a policy of liberalisation and small-scale privatisation without structural reforms…

On the other hand, large-scale privatisation without adjoining reforms, market opening without aiding reforms and bank liberalisation without enterprise restructuring affect growth adversely. Quick reform policies allow transition countries to profit from higher growth for an extended period of time. The pace of reforms normally appears to have only limited effects on short-term and medium-term growth…

Reforms and economic growth in transition economies downloads

Source: Bank of Finland, Institute for Economies in Transition

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