Economic growth and quality of institutions in 27 postsocialist economies

Alexiou, Constantinos; Vogiazas, Sofoklis; Solovev, Nikita

doi:10.1108/jes-02-2019-0069

Cited by 26 publications

(19 citation statements)

References 67 publications

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“…The literature has established that institutional quality is an important determinant of a country's economic growth and development (e.g. Acemoglu et al, 2005;Alexiou et al, 2020;North, 1990). However, limited studies have examined the effect of institutions on social indicators such as health and education.…”

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confidence: 99%

Does economic freedom improve health outcomes in sub-Saharan Africa?

Sharma

2020

IJSE

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PurposeThe purpose of this study is to examine the impact of economic freedom on four key health indicators (namely, life expectancy, infant mortality rate, under-five mortality rate and neonatal mortality rate) by using a panel dataset of 34 sub-Saharan African countries from 2005 to 2016.Design/methodology/approachThe study obtains data from the World Development Indicators (WDI) of the World Bank and the Fraser Institute. It uses fixed effects regression to estimate the effect of economic freedom on health outcomes and attempts to resolve the endogeneity problems by using two-stage least squares regression (2SLS).FindingsThe results indicate a favourable impact of economic freedom on health outcomes. That is, higher levels of economic freedom reduce mortality rates and increase life expectancy in sub-Saharan Africa. All areas of economic freedom, except government size, have a significant and positive effect on health outcomes.Research limitations/implicationsThis study analyses the effect of economic freedom on health at a broad level. Country-specific studies at a disaggregated level may provide additional information about the impact of economic freedom on health outcomes. Also, this study does not control for some important variables such as education, income inequality and foreign aid due to data constraints.Practical implicationsThe findings suggest that sub-Saharan African countries should focus on enhancing the quality of economic institutions to improve their health outcomes. This may include policy reforms that support a robust legal system, protect property rights, promote free trade and stabilise the macroeconomic environment. In addition, policies that raise urbanisation, increase immunisation and lower the incidence of HIV are likely to produce a substantial improvement in health outcomes.Originality/valueExtant economic freedom-health literature does not focus on endogeneity problems. This study uses instrumental variables regression to deal with endogeneity. Also, this is one of the first attempts to empirically investigate the relationship between economic freedom and health in the case of sub-Saharan Africa.

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confidence: 99%

Does economic freedom improve health outcomes in sub-Saharan Africa?

Sharma

2020

IJSE

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“…At the same time, we note significant problems in the development of transition economies in the post-Soviet space, which include Ukraine and Belarus. Being geographically close to successful transition economies and having even greater economic potential than the above-mentioned countries of Central and Eastern Europe, these countries have not been able to fully realize it (Benešová, et al, 2017;Alexiou, Vogiazas, Solovev, 2020). We note a set of modern economic and social problems that hinder the effective development of economic systems of Ukraine and Belarus.…”

Section: Introductionmentioning

confidence: 87%

“…Since gaining independence in 1991, the economies of Ukraine and Belarus have been actively transformed in the context of the development and introduction of market mechanisms. At the same time, while Ukraine uses a model where the state mostly performs regulatory functions, having a fairly low impact on the economy through state-owned enterprises, Belarus focuses on the development of the public sector (Alexiou, Vogiazas, Solovev, 2020). We can also emphasize the export-oriented economic systems of both countries (Benešová, Smutka, 2016).…”

Section: Assessment Of the Development Of Economic Systems Of Ukrainementioning

confidence: 99%

“…Given the problems of the economies of Ukraine and Belarus and the lack of their development (as Ukraine did not reach 2008 key economic indicators at the end of 2019, and Belarus did not significantly exceed them (see Table 1)), countries need to find ways to stimulate their economic systems. At the same time, it should be noted that Belarus and Ukraine either tried to implement a significant number of tools to stimulate economic development without much success, or are implementing those tools under current conditions of functioning of their economic systems (Benešová, et al, 2017;Alexiou, Vogiazas, Solovev, 2020).…”

Section: Foreign Currency Refinancing In the Context Of Stimulating Tmentioning

confidence: 99%

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Foreign Currency Refinancing as a New Element of Stimulating the Economic Development of Transition Economies

Hrona

2020

BJES

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Transition economies require finding and implementing new elements to stimulate their development, especially with regard to the economic systems of the former Soviet countries (Ukraine and Belarus). Under these conditions, it is important to use the experience of other transition economies, which includes the use of foreign currency refinancing. Purpose. Substantiation of the introduction of foreign currency refinancing as a new element of stimulating the economic development of transition economies through assessment of the development of the mentioned economies in Belarus and Ukraine. Design/methodology/approach. The study employed a quantitative analysis of statistical data to assess the development of transit economies in Ukraine and Belarus over the 21-year period. Correlation and regression analysis was also involved to identify key areas of impact of foreign currency refinancing on transitive economic systems. In this case, it was proposed to use five regression functions (linear; exponential; polynomial; logarithmic; power). It was separately proposed to determine the correlation ratio between the key areas of impact of foreign currency refinancing on the transition economy and the volume of foreign exchange refinancing using three methods: the determination factor; checking the correlation coefficient on the Chaddock’s scale; comparison of the correlation coefficient with the critical correlation coefficient. Findings. The article analyses the development of the transition economies of Ukraine and Belarus over the 21-year period (from 1999 to 2019) and emphasises that since 2008 the development of economic systems of the countries selected for the study has almost stopped despite activities (tools) used to stimulate the growth of national economies. The authors prove the importance of finding and using new elements to stimulate the economic development of the economies of Belarus and Ukraine. The use of foreign currency refinancing as a new element of stimulating the development of economic systems of Ukraine and Belarus is justified. The mechanism, beneficial and negative impacts of the use of foreign currency refinancing for transition economies selected for the study are identified. The key areas of influence of foreign currency refinancing on the economic systems of Belarus and Ukraine are identified, where the size of lending; revenues of budgets of different levels, business entities, households are the main ones. At the same time, the authors managed to refute the possibility of a significant negative impact of currency refinancing on the growth of the monetary base, inflation and devaluation processes in the countries selected for the study. Practical implications: the conducted research is important for ensuring the long-term development of transition economies, primarily in Ukraine and Belarus. Originality/value: the study will allow to identify key areas of impact of foreign currency refinancing on transitive economic systems, and revealing its beneficial and negative impacts for economies of this type on the example of Ukraine and Belarus.

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“…In [13], the methodology of group cointegration was used to analyze the impact of the quality of institutions of 27 post-socialist countries on economic growth in the period from 1996 to 2016, because the estimates of the auto-regression model of distributed lags (ARDL) are free from the problem endogeneity. K. Aleksiu and coauthors find that in the long term, economic growth is positively associated with the rule of law, voice and accountability [13].…”

Section: Institutionsmentioning

confidence: 99%

Methodology for assessing the impact of institute on sustainable economic growth

Zakharova

Zemtsova

2021

E3S Web Conf.

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The paper presents an overview of methodological approaches to the study of the influence of institutions on macroeconomic indicators characterizing long-term economic growth, although other indicators that are influenced by institutions can be identified: economic growth rate, GDP per capita, saving rate, and total factor productivity. The article analyzes the research of leading scientists conducted within the framework of the institutional theory that explains global inequality and some of its features. In addition to the institutional theory, two more theories compete to explain the causes of global inequality: geographical theory and the theory of cultural influence. Both of these theories are unpromising from the point of view of practical applicability, since geographical, climatic factors, cultural characteristics are not subject to the influence of economic policy within reasonable time limits. Institutional theory explains the inequality of countries by differences in their formal legal and informal social norms that govern the behavior of individuals and structure social interactions. The growing volume of empirical work of this kind has shown that institutions should be considered in the context of alternative approaches (culture and social capital, human capital), alternative econometric methods and alternative strategies for identifying the influence of institutions on macroeconomic indicators (long-term economic growth).

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Economic growth and quality of institutions in 27 postsocialist economies

Cited by 26 publications

References 67 publications

Does economic freedom improve health outcomes in sub-Saharan Africa?

Does economic freedom improve health outcomes in sub-Saharan Africa?

Foreign Currency Refinancing as a New Element of Stimulating the Economic Development of Transition Economies

Methodology for assessing the impact of institute on sustainable economic growth

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