Modeling Structural Change: An Application to the New EU Member States and Accession Candidates

Ulrich Thiessen and Paul Gregory

Eastern European Economics, 2007, vol. 45, issue 4, 5-35

Abstract: The rapid changes in the transition economies must be evaluated in a comparative context. This paper provides a comprehensive comparative analysis using a large panel data set of market economies as a reference point. We wish to establish the extent and speed with which the structures of the transition economies converge toward other country groups, ranked according to income levels. The exercise provides an alternate measure of transition success, grounded in quantitative rather than subjective indicators. It also shows future sectoral growth patterns assuming that remaining structural distortions continue to be removed.

Date: 2007
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