The structural transformation of transition economies
Calumn Hamilton and
Gaaitzen J. de Vries
World Development, 2025, vol. 191, issue C
Abstract:
This paper places recent growth and structural transformation in the former-Soviet Union (FSU) countries in comparative perspective. It introduces the Economic Transformation Database of Transition Economies, which provides consistent annual data of employment, real and nominal value added by 12 sectors in 14 FSU countries for the period 1990–2019. We find that structural change in FSU countries has been uniquely growth-reducing as workers relocated to less productive sectors. This contrasts to sub-Saharan Africa, Latin America, developing Asia, and the formerly centrally planned economies of Central and Eastern Europe (CEE), where labour has shifted from low- to high-productivity sectors. Our analysis reveals that average aggregate productivity growth was 0.64 percentage points lower each year in FSU countries, while it was 0.31 percentage points per annum higher in CEE countries due to their differing patterns of structural change. We argue that these differences stem from varying initial conditions, external factors, and reform strategies.
Keywords: Structural change; ETD-TE database; Productivity growth; Transition economies (search for similar items in EconPapers)
JEL-codes: C80 N10 O10 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X25000622
Full text for ScienceDirect subscribers only
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:eee:wdevel:v:191:y:2025:i:c:s0305750x25000622
DOI: 10.1016/j.worlddev.2025.106977
Access Statistics for this article
World Development is currently edited by O. T. Coomes
More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().