The transition to market-based economic systems in the countries of central and eastern Europe and the former Soviet Union involves fundamental shifts in the allocation of resources and deep changes in the structure of production and employment. This paper uses a simple model of economic...

This paper investigates the relative importance of three sets of factors – initial conditions, macroeconomic stabilisation and structural reforms – as determinants of growth in transition economies during the first 10 years. The paper has two main results. First, average growth over the last...

This paper provides what we believe to be the first collection of data on social capital in the transition countries of central/eastern Europe and of the former Soviet Union. Using data from the World Values Survey 1990 and 1995 we document the degree of trust and of civic participation and find...

This paper offers the first comprehensive analysis of legal change in the protection of shareholder and creditor rights in transition economies and its impact on the propensity of firms to raise external finance. Following La Porta et al. (1998), the paper constructs an expanded set of legal...

A positive link between progress in market-oriented reforms and cumulative growth has been recorded across transition countries. Some less reform-minded countries, however, have also grown strongly in recent years. This paper examines whether there is a robust causal impact of reforms on growth,...

Low-income households spend a substantial share of their income on utility services such as electricity, heating and water. The difficulty these socially vulnerable consumers have in affording further tariff increases is often used as an argument against tariff reform. However, detailed...

This paper sifts through a variety of competitiveness and business environment indicators to assess the state of reforms in south-eastern Europe (SEE). While common themes emerge, such as corruption, weak tax administration and the lack of availability of skills, there is a clear gap between...

We investigate whether management quality explains firm performance in Russia. We find that it explains relatively little in terms of firm performance, but it does explain some of the differences between firms in Russia’s Far East and the rest of Russia. While management practices may not yet...

This paper analyses the accuracy of GDP growth forecasts prepared by the EBRD for 25 transition countries between 1994 and 2004. It provides the first comprehensive statistical analysis of output growth forecasts for transition countries in central and eastern Europe and the Commonwealth of...

This paper examines institutional differences between the former East and West Germany and four central European transition countries (the Czech Republic, Hungary, Poland and the Slovak Republic). Using enterprise survey data we show that the quality of both formal and informal institutions in...