Recovery and Growth in Transition Economies 1990–97: A Stylized Regression Analysis

International Monetary Fund

No 1998/141, IMF Working Papers from International Monetary Fund

Abstract: This paper analyzes the determinants of growth in 25 transition economies during 1990–97. The paper’s main finding is that macroeconomic stabilization, structural reform, and reduction of government expenditures are key to achieving sustainable growth. Although the initial effect of reforms on output may be negative, over time the best growth performances are in those countries with the greatest progress in implementing reforms. The analysis also confirms that although adverse initial conditions hurt growth, their effect is small compared to the other factors.

Keywords: WP; market economy; CIS country; economic growth; low income; Transition and growth; reforms; sustainable growth; initial conditions of transition; transition country; country dummy; effects estimate; Structural reforms; Inflation; Government debt management; Central and Eastern Europe; Baltics; Eastern Europe (search for similar items in EconPapers)
Pages: 37
Date: 1998-09-01
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1998/141

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