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Political competition, economic reform and growth: theory and evidence from transition countries

[phd thesis]

Pavletic, Ivan

Corporate Editor
Eidgenössische Technische Hochschule Zürich, NADEL Nachdiplomstudium für Entwicklungsländer

Abstract

Which political and institutional factors trigger reforms that enable the poor to benefit from the process of economic growth? How can the incentives of policy makers be influenced in order to achieve such a dynamic? These are the questions this study seeks to address by examining the transition pro... view more

Which political and institutional factors trigger reforms that enable the poor to benefit from the process of economic growth? How can the incentives of policy makers be influenced in order to achieve such a dynamic? These are the questions this study seeks to address by examining the transition process in post-communist countries. The author argues that political competition within an accepted and respected institutional environment has been a driving force in shaping the direction and success of transition reforms. Evidence shows that in countries with a sufficient degree of political competition, citizens responded to economic crises by calling for economic liberalization. Economic liberalization removed existing distortions, increased economic efficiency and raised public welfare. This activated a dynamic, self-enforcing reform process that also strengthened the political and economic power of the poor. In the absence of political competition, such a process failed to emerge, thereby contributing to the persistence of poverty. Based on these findings, there is good reason to postulate that some level of political competition is essential for transition reforms to improve economic efficiency and public welfare in a sustainable manner.... view less

Keywords
transformation; economic development (on national level); Southeastern Europe; economic reform; liberalization; economic growth; Bulgaria; Albania; economic policy; Romania; competition; politics

Classification
Political Economy
Economic Policy

Method
empirical

Document language
English

Publication Year
2010

Publisher
vdf Hochschulverl. an der ETH Zürich

City
Zürich

Page/Pages
XV,222 p.

ISBN
978-3-7281-3311-3

Status
Published Version; reviewed

Licence
Creative Commons - Attribution-Noncommercial-No Derivative Works


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Based on DSpace, Copyright (c) 2002-2022, DuraSpace. All rights reserved.