Growth in Transition: What We Know, What We Don't, and What We Should
Journal of Economic Literature
vol. 40,
no. 3, September 2002
(pp. 793-836)
Abstract
This essay surveys macroeconomic issues that marked the transition from planned to market economy in Central and Eastern European and former Soviet Union countries. We first establish stylized facts of the transition so far. We then critically survey the theoretical literature on transition, discussing explanations for the initial output fall, and mediumterm issues such as optimal speed of transition, disorganization, institutions and sectoral reallocation as source of output dynamics. We review the empirical literature to assess how well it translates the theoretical models and explains the stylized facts. We conclude with suggestions for future research.Citation
Campos, Nauro, F., and Abrizio Coricelli. 2002. "Growth in Transition: What We Know, What We Don't, and What We Should." Journal of Economic Literature, 40 (3): 793-836. DOI: 10.1257/002205102760273797JEL Classification
- P27 Socialist Systems and Transitional Economies: Performance and Prospects
- P24 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure; Money; Inflation
- O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- P23 Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
- P34 Socialist Institutions and Their Transitions: Financial Economics
- E22 Capital; Investment; Capacity