The Evolution of Output in Transition Economies : Explaining the Differences

Author/Editor:

Ratna Sahay ; Jeronimo Zettelmeyer ; Eduardo Borensztein ; Andrew Berg

Publication Date:

May 1, 1999

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

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:

What are the relative roles of macroeconomic variables, structural policies, and initial conditions in explaining the time path of output in transition and the large observed differences in output performance across transition economies? Using a sample of 26 countries, this paper follows a general-to-specific modeling approach that allows for differential effects of policies and initial conditions on the private and state sectors and for time-dependent effects of initial conditions. While showing some fragility to model specification, the results point to the preeminence of structural reforms over both initial conditions and macroeconomic variables in explaining cross-country differences in performance and the timing of the recovery.

Series:

Working Paper No. 99/73

English

Publication Date:

May 1, 1999

ISBN/ISSN:

9781451849448/1018-5941

Stock No:

WPIEA0731999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

81

Please address any questions about this title to publications@imf.org