1. Economic Reforms, Democracy and Growth in Eastern Europe and Eurasia
- Author:
- Robyn Murphy, Ron Sprout, and Paul Pleva
- Publication Date:
- 11-2005
- Content Type:
- Working Paper
- Institution:
- United States Agency for International Development
- Abstract:
- This research analyses the interaction between economic reforms, reforms, and economic growth. One of the salient characteristics of the transition region has been two very distinct patterns between economic and democratic reforms: convergence of the two reform dimensions in the CEE countries and divergence Eurasia. Nevertheless, results from econometric tests (which attempt to control for possible intervening influences) suggest that economic and democratic reforms are mutually reinforcing throughout the region, even in Eurasia. We also found evidencthat: (1) economic reforms have a stronger impact on democratic reforms than the reverse; (2) economic reforms favorably affect economic growth; (3) democratic refavorably affect economic growth indirectly (via economic reforms) if not directly; and (4) while the feedback effects from economic growth to reforms are more ambiguous, there is some evidence that economic growth may actually stifle democratic reforms, and/or economic contraction may facilitate democratization.
- Topic:
- Democratization, Development, and Economics
- Political Geography:
- Eurasia and Eastern Europe