Institution Building and Growth in Transition Economies

47 Pages Posted: 10 Aug 2006

See all articles by Luc Laeven

Luc Laeven

European Central Bank (ECB); Centre for Economic Policy Research (CEPR)

Thorsten Beck

City University London - Sir John Cass Business School; Tilburg University - European Banking Center, CentER

Multiple version iconThere are 2 versions of this paper

Date Written: June 2006

Abstract

Drawing on the recent literature on economic institutions and the origins of economic development, we offer a political economy explanation of why institution building has varied so much across transition economies. We identify dependence on natural resources and the historical experience of these countries during socialism as major determinants of institution building during transition. Using natural resource reliance and the years under socialism to extract the exogenous component of institution building, we also show the importance of institutions in explaining the variation in economic development and growth across transition economies during the first decade of transition.

Keywords: Transition economies, institutions, economic development

JEL Classification: O10, P20

Suggested Citation

Laeven, Luc A. and Beck, Thorsten, Institution Building and Growth in Transition Economies (June 2006). CEPR Discussion Paper No. 5718, Available at SSRN: https://ssrn.com/abstract=923630

Luc A. Laeven (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Thorsten Beck

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Tilburg University - European Banking Center, CentER ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
28
Abstract Views
1,082
PlumX Metrics