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The Great Divide Revisited: Ottoman and Habsburg Legacies on Transition

Valentina Dimitrova‐Grajzl
Authors registered in the RePEc Author Service: Valentina Dimitrova-Grajzl

Kyklos, 2007, vol. 60, issue 4, 539-558

Abstract: The former socialist countries of South East and Central Europe exhibit great variation in institutional quality. Unlike the sparse existing literature, I claim that the variation can be explained by the legacies of the Ottoman and Habsburg Empires. I identify historical legacies of the Empires, which have affected the current institutional quality of the successor states. I show empirically that the Empires' legacies are key determinants of institutional quality, and that the Habsburg successors have institutions that are more efficient in a market economy than the Ottoman successors. In contrast, I find an insignificant effect of socialism on institutional quality.

Date: 2007
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https://doi.org/10.1111/j.1467-6435.2007.00384.x

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