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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an OpenContent Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. www.econstor.euThe views and opinions expressed here reflect the authors' point of view and not necessarily those of CASE Network.This report has been prepared under the Workpackage 1 of the Specific Targeted Research Project (STREP) within the framework of the ENEPO project (EU Eastern Neighbourhood: Economic Potential and Future Development), financed under the Sixth Framework Programme of the European Commission, Contract No 028736 (CIT5). The content of this publication is the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union or any other institutions the authors may be affiliated to.Acknowledgements. The current paper would not have been possible without generous support and assistance received from ENEPO project leaders Marek Dąbrowski and Maryla Maliszewska who provided useful advice and encouraged our team at all stages of our work. We are also very grateful to Janusz Szyrmer for his attentive reading, informal reviewing of the final version and for his comments on the manuscript that provided an invaluable critical feedback. We also benefited from the comments of participants of annual ENEPO meeting in Kyiv (March, 2007) and in Warsaw (April, 2008 The CASE Network is a group of economic and social research centers in Poland, Kyrgyzstan, Ukraine, Georgia, Moldova, and Belarus. Organizations in the network regularly conduct joint research and advisory projects. The research covers a wide spectrum of economic and social issues, including economic effects of the European integration process, economic relations between the EU and CIS, monetary policy and euro-accession, innovation and competitiveness, and labour markets and social policy. The network aims to increase the range and quality of economic research and information available to policy-makers and civil society, and takes an active role in on-going debates on how to meet the economic challenges facing the EU, post-transition countries and the global ...

In this paper the impact of market reforms on economic growth has been analyzed using the panel data for 26 post-socialist economies over the period between 1989 and 2005. Taking into account the dynamic properties of the data, the concepts of cointegration and equilibrium correction model for panel data has been used as the analytical framework. First, well-specified regression models have been obtained. Second, long and short run aspects of 'reforms-growth' relationship have been considered. Out analysis has detected the existence of cointegration between the level of ERBD reform index and the level of real GDP per capita. This is interpreted as the presence of the long run relationship between these indicators. Third, it has been found that there is a statistically significant positive influence of economic reforms on economic growth in the long run. In addition, market reforms positively influence economic growth in the short-run, but with a one-year lag. The equilibrium correction mechanism in corresponding regressions reflects existing biases of the analyzed indicators from the equilibrium trajectory, as well as direction and speed of adjustment to this trajectory. Our approach to modeling of the relationship between market reforms and economic growth explains a puzzle of high rates of economic growth in some countries with a relatively low level of ERBD reform index. Finally, in contrast to other studies employing a different methodology, statistically significant influence of economic growth on market reforms has been established both in the long and short run, our study shows that there is no such relationship.