Did Support for Economic and Political Reforms Increase During the Post‐Communist Transition, and If so, Why?

48 Pages Posted: 16 Mar 2013  

Riccardo Rovelli

University of Bologna - Department of Economics; IZA Institute of Labor Economics

Anzelika Zaiceva

University of Modena and Reggio Emilia; IZA Institute of Labor Economics

Date Written: April 2013

Abstract

We study the dynamics of individual support for changes in the economic and political system, using a unique dataset for 12 transition economies over the period 1991–2004. We document that support for transition was initially lower in the CIS countries and that there has been a converging trend in the support for reforms between the CIS and the Baltic and Central and Eastern European countries. We suggest several explanations for the initial divergence and the post‐98 convergence in support for transition between these three groups of countries, and show that economic growth, declining income inequality and improving quality of governance have contributed to increase the support for transition. In addition, we find that increased support for the market economy and democracy in the CIS is accompanied by a larger increase in trust towards the political institutions. Our results also confirm the implications of Aghion et al. ()'s model of a negative correlation between trust and the demand for government regulation.

Keywords: Political economy of transition, support for reforms

Suggested Citation

Rovelli, Riccardo and Zaiceva, Anzelika, Did Support for Economic and Political Reforms Increase During the Post‐Communist Transition, and If so, Why? (April 2013). Economics of Transition, Vol. 21, Issue 2, pp. 193-240, 2013. Available at SSRN: https://ssrn.com/abstract=2234291 or http://dx.doi.org/10.1111/ecot.12009

Riccardo Rovelli (Contact Author)

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy
+39 051 2092 601 (Phone)
+39 051 6402 664 (Fax)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Anzelika Zaiceva

University of Modena and Reggio Emilia ( email )

Viale A. Allegri 9
Modena, Modena 42121
Italy

IZA Institute of Labor Economics ( email )

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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