Using synthetic control method to estimate the growth effects of economic liberalisation : evidence from transition economies

Kantorowicz, Jaroslaw (avtor), Spruk, Rok (avtor)

We examine the contribution of institutional reforms to economic growth. To this end, we distinguish between several classes of institutional reform in the approach to economic liberalisation. Based on a sample of 24 current and former transition economies for the period 1980–2016, we estimate the counterfactual scenarios related to each distinctive institutional approach to the economic liberalisation by making use of the synthetic control method. Our evidence uncovers notable contrasts in the long-term effectiveness of designated policy approaches in recovering from the transitional recession. A variety of synthetic control estimates suggests that a sustained big bang approach (rapid reforms) appears to be the most effective approach, while an abortive and gradualist approach tends to produce a permanent breakdown of the growth trajectories relative to the estimated counterfactuals. The point estimates survive an extensive battery of placebo tests. By employing the same methodological tool kit, future research could examine the impact of transition reforms on other socio-economic variables, such as the poverty rates, income inequalities, health and environmental outcomes.

• Jezik: Angleški jezik
• Ključne besede: economic growth, economic liberalisation, synthetic control method, transition economies
• Vrsta gradiva: Članek v reviji
• Tipologija: 1.01 - Izvirni znanstveni članek
• Organizacija: EF - Ekonomska fakulteta
• Status publikacije: Objavljeno
• Različica publikacije: Objavljena publikacija
• Leto izida: 2024
• Št. strani: Str. 2332-2360
• Številčenje: Vol. 47, iss. 6
• PID: 20.500.12556/RUL-167418
• UDK: 330.1
• ISSN pri članku: 0378-5920
• DOI: 10.1111/twec.13544
• COBISS.SI-ID: 179257603
• Datum objave v RUL: 20.02.2025

Gradivo je del revije

• Naslov: The world economy
• Skrajšan naslov: World econ.
• Založnik: Elsevier
• ISSN: 0378-5920
• COBISS.SI-ID: 26642176

Licence

• Licenca: CC BY 4.0, Creative Commons Priznanje avtorstva 4.0 Mednarodna
• Povezava: http://creativecommons.org/licenses/by/4.0/deed.sl
• Opis: To je standardna licenca Creative Commons, ki daje uporabnikom največ možnosti za nadaljnjo uporabo dela, pri čemer morajo navesti avtorja.

Sekundarni jezik

• Jezik: Slovenski jezik
• Ključne besede: ekonomija, liberalizacija, metode