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The political economy of reforms: Empirical evidence from post- communist transition in the 1990s

Author

Listed:
  • Byung-Yeon Kim

    (University of Essex, Department of Economics)

  • Jukka Pirttilä

    (Bank of Finland Institute for Economies in Transition)

Abstract
Using a novel data set from post-communist countries in the 1990s, this paper examines linkages between political constraints, economic reforms and growth. A dynamic panel analysis suggests public support for reform is negatively associated with income inequality and unemployment. Both the ex post and ex ante political constraints of public support affect progress in economic reform, which in turn influences economic growth. The findings highlight that while economic reforms are needed to foster growth, they must be designed so that they do not undermine political support for reform.

Suggested Citation

  • Byung-Yeon Kim & Jukka Pirttilä, 2003. "The political economy of reforms: Empirical evidence from post- communist transition in the 1990s," Macroeconomics 0304009, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0304009
    Note: Type of Document - pdf; prepared on IBM PC ; to print on HP/PostScript/Franciscan monk; pages: 31 ; figures: included.
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    References listed on IDEAS

    as
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    11. BRUNETTI, AYMO AART OLIVER & Kisunko,Gregory & Weder,Beatrice Silvia, 1997. "Institutional obstacles to doing business : region-by-region results from a worldwide survey of the private sector," Policy Research Working Paper Series 1759, The World Bank.
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    20. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
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    Citations

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    Cited by:

    1. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," William Davidson Institute Working Papers Series wp1057, William Davidson Institute at the University of Michigan.
    3. Michael Mitsopoulos & Theodore Pelagidis, 2007. "Rent‐Seeking and Acceptance of Reforms in Higher Education," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 10(3), pages 177-192.
    4. Michael Mitsopoulos & Theodore Pelagidis, 2007. "Rent-Seeking and Ex Post Acceptance of Reforms in Higher Education," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 10(3), pages 177-192.
    5. Falcetti, Elisabetta & Lysenko, Tatiana & Sanfey, Peter, 2006. "Reforms and growth in transition: Re-examining the evidence," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 421-445, September.

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    More about this item

    Keywords

    Political constraints; economic reform; transition; growth; dynamic panel models;
    All these keywords.

    JEL classification:

    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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