scholarly journals Growth and industrial policy during transition

2014 ◽  
Vol 59 (201) ◽  
pp. 7-34 ◽  
Author(s):  
Bozidar Cerovic ◽  
Aleksandra Nojkovic ◽  
Milica Uvalic
Keyword(s):  
Industrial Policy ◽  
Transition Economies ◽  
Economic Transition ◽  
Initial Conditions ◽  
Transition Countries ◽  
Important Change ◽  
Industrial Manufacturing ◽  
Global Recession ◽  
Level Of Economic Development

After twenty-five years of economic transition economic performance varies considerably in transition countries, while in most cases current outcomes show that the desired effects have not been achieved. In this paper we elaborate on why industrial policy has been a key missing element in the transition and has greatly contributed to the unexpectedly small and slow pace of economic recovery. After discussing the achieved level of economic development we undertake an empirical analysis in order to define the role of several important factors of growth, as seen at the beginning of transition (reform progress, macroeconomic stabilisation, initial conditions) and those that attracted particular attention during the global crisis (industrial/manufacturing output, exports). The analysis shows that the growth model in transition economies has altered both over time and in relation to the progress of transition reforms. The most important change concerns the share of industrial output in GDP, which is found to be one of the most important factors of growth after the initial phase of reform. These results suggest that transition economies should implement industrial policy measures as an integral part of their reform strategy instead of just speeding up reforms as the key (if not the only) element of government policy. Based on these results, we explore what would be a viable and proper industrial policy in transition countries, particularly what should be done in current conditions after the damaging effects of the recurrent global recession, and make some policy suggestions.

scholarly journals FDI and Its Impact on Trade in the East Asian Transition Economies

2021 ◽  
Author(s):  
Sung Jin Kang ◽  
Seon Ju Lee
Keyword(s):  
Trade Liberalization ◽  
Transition Economies ◽  
Economic Transition ◽  
East Asian ◽  
Lao Pdr ◽  
Transition Countries ◽  
Complementary Effect ◽  
Independent Variable ◽  
The Impact

As globalization and trade liberalization have increased integration of the world economy through financial and trade flows, the role of FDI and trade on economic growth is becoming more influential. This paper investigates the impact of FDI on trade of the East Asian economic transition countries, namely the China, Cambodia, Lao PDR, and Vietnam, employing FDI flow and FDI stock data separately. The data from these four countries during the period 1990–2019 have been collected, and OLS and panel within fixed effect estimators are utilized. The main findings show that, first, when estimated using FDI flow as independent variable, there exists complementary effect between FDI and trade, and the coefficients are significant except for Cambodia. Second, when estimated using FDI stock as independent variable, the impact of FDI decreases and even substitutability effect is found in China at significant level. Third, in both cases, the coefficient of FDI is shown positive and significant in Vietnam. In addition, the paper finds the effects of human capital, GDP, and WTO accession on trade are positive, while the effects of exchange rate, financial development, and tariff rate vary among the East Asian economic transition countries.

scholarly journals Horvátország európai integrációja a makroökonómiai mutatók tükrében

2011 ◽  
Vol 6 (1-2) ◽  
pp. 35-41
Author(s):  
Balázs Kotosz
Keyword(s):  
Fiscal Policy ◽  
Soviet Union ◽  
Transition Economies ◽  
Former Soviet Union ◽  
Economic Transition ◽  
Initial Conditions ◽  
Transition Process ◽  
Gdp Growth ◽  
State Participation ◽  
Growth Differences

The collapse of communist economies in Eastern Europe and former Soviet Union, as well as their subsequent transition towards market economies, was arguably one of the most far-reaching economic events of the 20lh century. Pain accom panied the economic transition process; all countries experienced a major fall in output after the start of reforms. The growth performance in transition economies was widely different by countries. The paper is looking for the reasons of the growth differences. Even if the initial conditions did not give the same possibilities to governments, early reforms has opened the way to market processes, which seems to be more efficient than state owned institutions in transition economies. In this context, the lower is the state participation, the highest is growth. Empirical analyses justify that GDP growth is higher in countries where state reallocation is decreasing and where tight fiscal policy has been kept.)

The administrative monopoly in China’s economic transition

2004 ◽  
Vol 37 (2) ◽  
pp. 265-280 ◽  
Author(s):  
Yong Guo ◽  
Angang Hu
Keyword(s):  
Transition Economies ◽  
Economic Transition ◽  
Transition Process ◽  
Rent Seeking ◽  
Transition Countries ◽  
Gradual Transition ◽  
Administrative Monopoly ◽  
Full Account ◽  
Unique Type

Corruption in transition economies has become the very focus of many recent discussions on politics and economics. However, the existing research has not taken full account of the experience of the gradual transition countries, especially China, and the incentives for rent creation in the transition process. Based on existing studies in this field, this paper addresses a new category of corruption in transition economies. In the context of the rent seeking theory, the authors examine what they regard as a unique type of corruption in China—administrative monopoly (AM), and outline its essence, causes, forms, features, the scale of the rent created, and the dissipation of the rent.

Corporate governance and residual state property (two qualitative shortcomings of privatization in transition countries)

2000 ◽  
Vol 9 (1) ◽  
Author(s):  
Wladimir Andreff
Keyword(s):  
Corporate Governance ◽  
Economic Transition ◽  
Economic Restructuring ◽  
Transition Countries ◽  
State Regulation ◽  
Informal Networks ◽  
Privileged Position ◽  
Role Of The State ◽  
Irregular Economy

The privatization in transition countries generated distorsions. Among the most dangerous distorsions are those introduced by a non legal or criminal privatization of management with the help of former or new informal networks connecting managers to the irregular economy and to some extent to the mafia. State regulation is required to control again monopoly power in privatized utilities and sectors where private stakes have won privileged position. It should be better to recognize the unavoidable role of the state in economic restructuring and use its intervention as a complementary - rather than an antagonistic - tool of the economic transition.

scholarly journals Transition and growth: What was taught and what happened

2009 ◽  
Vol 54 (183) ◽  
pp. 7-31 ◽  
Author(s):  
Bozidar Cerovic ◽  
Aleksandra Nojkovic
Keyword(s):  
Market Economy ◽  
Transition Economies ◽  
Initial Conditions ◽  
Growth Models ◽  
Transition Process ◽  
Transition Countries ◽  
Reform Process ◽  
Long Run ◽  
Catch Up

The paper demonstrates why the transition process is taking more time than predicted and why many countries are still far away from the projected goal: a developed market economy. Analyzing the causes and re-examining the endogenous character of the transition progress, the authors conclude that the majority of reforms were implemented at a pace conditional on the initial, pre-transition conditions. The results obtained show a significant impact on the economic and institutional heritage of a country, which lasts much longer than was predicted on the eve of the reform process: initial conditions strongly and significantly affect the speed of transition throughout the entire observed period (1989-2007). They also affect the performance of a country: in the first years the transition progress may affect growth in a positive way, but later it becomes insignificant. This can explain some growth peculiarities previously remarked when transition countries were analyzed by means of long-run growth models. Using Barro and Levine-Renelt models the authors show that despite somewhat better results for the second decade of transition many peculiar patterns remain, which could temporarily block poorer transition economies in their attempts to catch up and cause unnecessary losses since transition policies were not properly adjusted to the initial conditions.

scholarly journals Housing Privatization in Transition Countries: Institutional Features and Outcomes

2020 ◽  
Vol 20 (1) ◽  
pp. 51-71 ◽  
Author(s):  
Hana M. Broulíková ◽  
Josef Montag
Keyword(s):  
Transition Economies ◽  
Initial Conditions ◽  
Transition Countries ◽  
Housing Tenure ◽  
Micro Data ◽  
Housing Privatization ◽  
Institutional Features ◽  
Tenure Structure

AbstractWe provide an overview of housing privatization policies and outcomes in transition economies. Our primary aim is to collect and systematize key information concerning the institutional features of housing privatization in individual countries: we identify the initial conditions, the timeframe of housing privatization and its culmination, the extent of housing privatization, who decided about its terms and conditions, who was entitled to privatize the housing, and at what price. Furthermore, using micro-data covering all transition countries, we present new estimates of the extent of housing privatization, its dynamics during the second half of the 2000s, and the resulting housing tenure structure.

The role of geography and history in determining the slower progress of post-communist transition in the Balkans

2008 ◽  
Vol 41 (2) ◽  
pp. 123-145 ◽  
Author(s):  
Milenko Petrovic
Keyword(s):  
Eastern Europe ◽  
Economic Transition ◽  
Initial Conditions ◽  
Central European ◽  
The Balkans ◽  
Decisive Importance ◽  
Structural Impacts ◽  
Balkan States ◽  
Political Economic

Central European and Baltic nations have progressed markedly faster than the other former communist states of Eastern Europe in post-communist transition. While five East Central European and three Baltic states have managed to successfully achieve the most important goals of political and economic transition and fulfil the criteria for EU membership, their counterparts from the Balkans continue to experience serious difficulties in implementing transitional reforms and merely hope for such an outcome. Scholarly analyses of the reasons for this division of post-communist Eastern Europe have often tended to emphasise the decisive importance of the initial geo-political, economic and socio-cultural conditions dating back to the deep pre-communist histories of the countries in question. Not denying the relevance and structural impacts of some historical and geo-political facts concerning the establishment of these differences, this paper argues that there is a limited explanatory value to structural arguments of the role of initial conditions in assessing the reasons for the slower progress of the Balkan states in post-communist reform.

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