Economic Reform, Democracy and Growth During Post-Communist Transition

Jan Fidrmuc

No 372, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: This paper explores interactions between growth, economic liberalization and democratization during transition. The results can be summarized as follows: (1) Liberalization has a strong positive effect on growth during transition (also when controlling for endogeneity of liberalization in growth). (2) Democracy facilitates economic liberalization. (3) Because of its effect on liberalization, democracy has a positive overall effect on growth. Nevertheless, the marginal effect of democracy (after controlling for progress in economic liberalization) is negative during early transition. (4) The progress in democratization in turn depends on past economic performance in a surprising manner-the relationship between past growth and subsequent democracy appears negative. (5) Economic performance is an important determinant of electoral outcomes and, in particular, of support for reforms.

Keywords: Democracy; LIberalization; Economic Performance and Elections (search for similar items in EconPapers)
JEL-codes: E63 O11 P26 P27 (search for similar items in EconPapers)
Pages: pages
Date: 2001-03-01
New Economics Papers: this item is included in nep-dev, nep-eec and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Economic reform, democracy and growth during post-communist transition (2003)
Working Paper: Economic Reform, Democracy and Growth during Post-Communist Transition (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2001-372

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