EconPapers    
Economics at your fingertips  
 

Institutions and economic growth in transition countries — new experiences and implications from financial crisis 2007–2010 (Part 2)

Dawid Piatek ()
Additional contact information
Dawid Piatek: Poznan University of Economics

Ekonomia i Prawo, 2016, vol. 15, issue 4, 527-545

Abstract: Motivation: Cross-country growth regressions indicate that institutions are important for growth. Some institutions are created, protected and enforced by the government — they are the institutions of state. The most important for economic growth are: economic freedom and protection of property rights, political freedom (or democracy), quality of governance and the rule of law. Institutions are especially important in transition countries. Two questions arise: were institutions important for economic growth in transition countries during the financial crisis? What happened to the institutions of state during the financial crisis? Aim: The aim of the second part of this article is to verify two hypothesis about institutions and economic growth in transition countries, which were put forward in the first part of this article. In order to estimate the relationship between institutions and economic growth in transition countries during the crisis, a cross-sectional regression was conducted. Additionally the Granger causality test was conducted. Results: The obtained results indicate that during the recession, in countries were before the crisis the institutions were worse, the pace of the economic growth was greater (hypothesis 1 should be rejected). In order to verify hypothesis 2 that the economic growth contributes to changes in state institutions in such a way that the faster the pace of growth the greater the improvement in state institutions a cross-sectional regression was used and the Granger causality test was conducted. Obtained results do not confirm the hypothesis 2. The estimates of parameters were in line with the expectations but statistically insignificant.

Keywords: institutions; economic growth; transition countries; financial crisis (search for similar items in EconPapers)
JEL-codes: D02 O11 P30 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.12775/EiP.2016.036 (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:cpn:umkeip:v:15:y:2016:i:4:p:527-545

Access Statistics for this article

Ekonomia i Prawo is currently edited by Barbara Polszakiewicz and Jerzy Boehlke

More articles in Ekonomia i Prawo from Uniwersytet Mikolaja Kopernika
Series data maintained by Miroslawa Buczynska ().

 
Page updated 2017-09-29
Handle: RePEc:cpn:umkeip:v:15:y:2016:i:4:p:527-545