Recovery and Growth in Transition Economies 1990–97: A Stylized Regression Analysis

Publication Date:

September 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper analyzes the determinants of growth in 25 transition economies during 1990–97. The paper’s main finding is that macroeconomic stabilization, structural reform, and reduction of government expenditures are key to achieving sustainable growth. Although the initial effect of reforms on output may be negative, over time the best growth performances are in those countries with the greatest progress in implementing reforms. The analysis also confirms that although adverse initial conditions hurt growth, their effect is small compared to the other factors.

Series:

Working Paper No. 1998/141

Subject:

Expenditure Government debt management Inflation Labor Macrostructural analysis Prices Public financial management (PFM) Structural reforms

English

Publication Date:

September 1, 1998

ISBN/ISSN:

9781451928365/1018-5941

Stock No:

WPIEA1411998

Pages:

37

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