THE QUALITY OF GOVERNANCE IN TRANSITION COUNTRIES

Dawid Piątek

DOI: http://dx.doi.org/10.12775/EiP.2010.019

Abstract


The purpose of this paper is to analyze changes in governance in transition countries and to evaluate their distance to high-income OECD countries. Six variables that consist on governance were analyzed.

According to many authors institutions are the most important determinant of long-term economic growth, especially in transition countries. Institutional changes are one of three main areas of economic transition (the others are macroeconomic stabilization and microeconomic liberalization). Economic research on economic growth during economic transition confirms that institutions with stabilization and liberalization are the most important determinants.

Conclusions of this paper are that in Central Eastern Europe and the Baltic states and in South Eastern Europe there is institutional convergence. However, Commonwealth of Independent States in analyzed period only slightly shortened their distance to OECD countries.


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References


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