Market Reforms and Growth in Post Soviet Countries: Results of the Econometric Analysis
In this paper the impact of market reforms on economic growth has been analyzed using the panel data for 26 post-socialist countries 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 EBRD reform index and the level of real GDP per capita.