Size of Government and Economic Growth: A Convergence Analysis of Former Soviet Union Countries from 1991 to 2018

Juan David Garcia Gonzalez (), Jose Ramos Pires Manso, Juan Mil n Garcia and Jaime de Pablo Valenciano
Additional contact information
Juan David Garcia Gonzalez: University of Almeria, Almeria, Spain
Jose Ramos Pires Manso: University of Beira Interior, Covilha, Portugal
Juan Mil n Garcia: University of Almeria, Almeria, Spain
Jaime de Pablo Valenciano: University of Almeria, Almeria, Spain

The AMFITEATRU ECONOMIC journal, 2024, vol. 26, issue Special 18, 1256

Abstract: There are 15 independent countries that emerged (re-emerged) from the Union of Soviet Socialist Republics since its collapse in 1991. The process of independence of the Former Soviet Union (FSU) countries was followed by massive economic, political, and institutional reforms that, in most cases, sought the transition from centralised systems to market economies. This paper uses the club convergence method developed by Phillips and Sul (2007, 2009) to analyse convergence in terms of size of government and economic growth between 1991 and 2018 for 14 FSU countries: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Lithuania, Latvia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. The results suggest the existence of two convergence clubs in terms of size of government. In both groups, the government spending has been reduced until 2008, followed by a stabilisation process. Turkmenistan is the only non-convergent country to any club. Likewise, there are three different convergence clubs in terms of GDP per capita. The analysis of economic convergence and the size of government in the FSU countries provides valuable insight into their path to sustainability. Economic efficiency, social equity, and institutional stability are essential components that these countries must strengthen to achieve long-term sustainable development.

Keywords: growth; size of state; convergence; club convergence; post-soviet; sustainability (search for similar items in EconPapers)
JEL-codes: A10 O10 Q01 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.amfiteatrueconomic.ro/temp/Article_3370.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aes:amfeco:v:26:y:2024:i:special18:p:1256

Access Statistics for this article

More articles in The AMFITEATRU ECONOMIC journal from Academy of Economic Studies - Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Valentin Dumitru ().