As the world is moving ahead, all national economies need to find their own development path. The economic growth should be continually high enough to provide for a normal and growing standard of living for the citizens and, at the same time, provide opportunities for introducing and engaging the new, incoming generations in the world of business. The countries differ not only by the levels of attained development standard, but also by the possible methods which might be used for accelerating growth.The paper discusses growth factors which could help Macedonia find its way to catch up with the developed world in the long run — if this is possible. Obviously, the importance of institutions understood as the “rules of the game” and underpinning them is one of the most important issues related to development that should be seen as a conditio sine qua non and a basic prerequisite of a “developmental wave”.
This article uses dynamic panel analysis to investigate the relationship between institutional improvement and economic performance in 29 transition countries. The contribution of this paper is two-fold. First, we find that per capita GDP is determined by the entire history of institutional reform under transition and that, conditional on this history, per capita GDP adjusts to recent institutional changes. Moreover, we find that the time-horizon over which we measure institutional change matters, with five-year changes showing the clearest effects on current levels of per capita GDP. Secondly, we address the pronounced methodological heterogeneity of this literature. To compensate for incomplete theoretical guidance from the institutional literature, we draw upon an institutional meta-regression analysis to inform our model specification. Our analysis covers the period 1992–2007.
Hölscher, J. (2000) (ed.): Financial Turbulence and Capital Markets in TransitionCountries. London: Macmillan Press, New York: St. Martin's Press.
Financial Turbulence and Capital Markets in TransitionCountries
The paper examines the requirements of an effective and legitimized democratic political system in the process of transition. The analysis and the conclusions are based on the Hungarian experience, which can carefully be applied to all Central and Eastern European (CEE) countries. Special focus is given to the relationship of legal certainty and the efficiency of the democratic system, to the tension between legalism and managerialism and to the characteristics of civil society organizations. In the conclusion special features of the transitional countries are pointed out.
The lack of a strong local entrepreneurial activity and the presence of a flourishing rent-seeking sector are two of the major issues raised when debating on developing and transition countries. We claim that the allocation of entrepreneurs between productive and rent-seeking sectors is mainly determined by the reward structure that prevails in both sectors. The introduction of a rent-seeking spillover factor permits to demonstrate that the entrepreneurs involved in production activities may find it convenient to switch to unproductive ones, when the production method operates under decreasing returns.