BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
Economic Freedom as a Driver for Growth in Transition
Abstract: This paper reviews the political economy view of economic
growth in post-communist economies making the transition to free markets,
focusing on the role of economic policy and institutions. We test the
hypothesis that better institutions, measured in terms of economic freedom,
contribute to growth. The empirical results from the cross-section of
transition economies confirm this hypothesis. The paper concludes that
non-linearities are present in the growth model and that differences arise
depending on how economic well-being is defined.
Keywords: growth; institutions; human capital; (follow links to similar papers)
JEL-Codes: O17; O40; O57; (follow links to similar papers)
28 pages, February 12, 2009
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