The political economy of reforms : Empirical evidence from post-communist transition in the 1990s
Kim, Byung-Yeon; Pirttilä, Jukka (15.07.2003)
JulkaisusarjaBOFIT Discussion Papers
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201408072149
Using a novel data set from post-communist countries in the 1990s, this paper examines linkages between political constraints, economic reforms and growth.A dynamic panel analysis suggests public support for reform is negatively associated with income inequality and unemployment.Both the ex post and ex ante political constraints of public support affect progress in economic reform, which in turn influences economic growth.The findings highlight that while economic reforms are needed to foster growth, they must be designed so that they do not undermine political support for reform. Keywords: Political constraints, economic reform, transition, growth, dynamic panel models, JEL classification: P26, O11, C33
Published in Journal of Comparative Economics, Vol.34, No.3 (2006), pp. 446-466 as "Political constraints and economic reform: Empirical evidence from the post-communist transition in the 1990s"