BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 4/2003:
The political economy of reforms: Empirical evidence from post-communist transition in the 1990s
Byung-Yeon Kim ()
and Jukka Pirttilä ()
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.
Keywords: political constraints; economic reform; transition; growth; dynamic panel models; (follow links to similar papers)
JEL-Codes: C33; O11; P26; (follow links to similar papers)
31 pages, April 15, 2003
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