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Home Grown or Imported? Initial Conditions, External Anchors and the Determinants of Institutional Reform in the Transition Economies

Year: 2007

Type: article

Abstract: In this article we examine the determinants of institutional change using a panel dataset comprising 25 transition economies. A defining characteristic of our approach is that we treat institutional change as a multidimensional unobserved variable, accounting for the fact that each of our indicators represents a noisy signal. Our results suggest that institutional change is significantly path dependent. However, policy can to some extent break this dependence through economic and political liberalisation at the start of the transition and with the help of an external anchor such as EU accession.

Source: The Economic Journal

DOI: 10.1111/j.1468-0297.2007.02053.x

Authors: Maria L. Di Tommaso, Martin Raiser, Melvyn Weeks

Institutions: University of Turin, World Bank, University of Cambridge

Language: English

Topic: Post-Communist Economic and Political Transition

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: green

Funder: European Bank for Reconstruction and Development