A Neoclassical Growth Model Applied to Transition in Central Europe

Ten Years after: What is Special About Transition Countries?

“…A number of existing studies analyze the prospects of transition economies to catch up with developed market economies. Some have concentrated on estimating the time required by transition countries to converge to the Western European level of development using a growth regression approach (Barbone/Zalduendo, 1996); Fischer et al (1997Fischer et al ( , 1998 and Fischer/Sahay (2000) assess the "distance" of the CEECs from Western market economies in terms of macroeconomic indicators such as inflation, budget deficit, etc., whereas Krkoska (1999) examines whether the macroeconomic fluctuations in transition economies are similar to those in Western European economies. The EBRD assesses regularly the progress of reform in each of the CEECs (EBRD various years) and provides a quantitative evaluation in a number of important areas (e.g.…”