Mind the Break! Accounting for Changing Patterns of Growth during Transition

Jan Fidrmuc and Ariane Tichit

No 6382, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We argue that econometric analyses based on transition countries? data can be vulnerable to structural breaks across time and/or countries. We demonstrate this argument by identifying structural breaks in growth regressions estimated with data for 25 countries and 16 years. Our method allows identification of structural breaks at a-priori unknown points in space or time. The only prior assumption is that breaks occur in relation to progress in implementing market-oriented reforms. We find robust evidence that the pattern of growth in transition has changed at least two times, yielding thus three different models of growth associated with different stages of reform. The speed with which individual countries progress through these stages differs considerably.

Keywords: Growth; Reform; Structural breaks; Transition (search for similar items in EconPapers)
JEL-codes: O47 P26 P27 (search for similar items in EconPapers)
Date: 2007-07
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (17)

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Related works:
Journal Article: Mind the break! Accounting for changing patterns of growth during transition (2009)
Working Paper: Mind the Break! Accounting for Changing Patterns of Growth during Transition (2009)
Working Paper: Mind the Break! Accounting for Changing Patterns of Growth during Transition (2008)
Working Paper: Mind the Break! Accounting for Changing Patterns of Growth during Transition (2007)
Working Paper: Mind the Break! Accounting for Changing Patterns of Growth during Transition (2007)
Working Paper: Mind the Break! Accounting for Changing Patterns of Growth during Transition (2004)
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