The Political Economy of Reforms: Empirical Evidence from Post-Communist Transition in the 1990s

31 Pages Posted: 19 Sep 2007

See all articles by Byung-Yeon Kim

Byung-Yeon Kim

Sogang University - Department of Economics

Jukka Pirttila

United Nations - World Institute for Development Economics Research (UNU/WIDER); Tampere University of Technology

Date Written: April 11, 2003

Abstract

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

Suggested Citation

Kim, Byung-Yeon and Pirttila, Jukka, The Political Economy of Reforms: Empirical Evidence from Post-Communist Transition in the 1990s (April 11, 2003). BOFIT Discussion Paper No. 4/2003. Available at SSRN: https://ssrn.com/abstract=1015458 or http://dx.doi.org/10.2139/ssrn.1015458

Byung-Yeon Kim (Contact Author)

Sogang University - Department of Economics ( email )

C.P.O. Box 1142
Seoul 100­611
Korea

Jukka Pirttila

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

Tampere University of Technology ( email )

P.O. 541, Korkeakoulunkatu 8 (Festia building)
Tampere, FI-33101
Finland

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