The Relationship between Economic Growth and the Speed of Liberalization During Transition

20 Pages Posted: 1 Jun 1998

See all articles by Berta Heybey

Berta Heybey

Government of the United States of America - Overseas Private Investment Corporation (OPIC)

Peter Murrell

University of Maryland - Department of Economics

Date Written: November 1997

Abstract

The paper examines existing results on the effects of the speed of liberalization on growth performance during transition. We highlight methodological problems in these studies, noting the existence of simultaneous causation and the use of variables that are not valid measures of the phenomena they supposedly represent. We implement solutions, examining the simultaneous relationship between growth and speed of liberalization. Initial conditions are much more important than policy changes in determining growth performance in the first four years of transition. Growth performance during the early years of transition has a strong effect on liberalization speed.

JEL Classification: P21, P27, P51, O57

Suggested Citation

Heybey, Berta and Murrell, Peter, The Relationship between Economic Growth and the Speed of Liberalization During Transition (November 1997). Available at SSRN: https://ssrn.com/abstract=57493 or http://dx.doi.org/10.2139/ssrn.57493

Berta Heybey

Government of the United States of America - Overseas Private Investment Corporation (OPIC) ( email )

Washington, DC
United States

Peter Murrell (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3476 (Phone)
301-405-3542 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
503
Abstract Views
2,306
rank
56,374
PlumX Metrics