Nominal and real stochastic convergence of transition economies

Cataloged from PDF version of article.To investigate the sensitivity of real and nominal economic convergence of transition economies to model specification and restrictions, we extend the work of Kocenda [J. Compar. Econ. 29 (2001) 1] by considering a more stable, post-1993 period and by adopting a more recent panel estimation approach. This new technique involves less restrictive assumptions than previous panel unit root techniques by allowing heterogeneity in convergence rates. Our results show less nominal and real economic convergence than those of Kocenda

Laboratories of Learning: Education, Learning and Knowledge-Making in Social Movements: Insights from Colombia, Nepal, South Africa and Turkey

This synthesis report brings together cross-case insights produced from four case studies of social movements in Colombia, Nepal, South Africa and Turkey. The research that was ably carried out by a committed group of researchers in collaboration with the movements themselves, their leaders and activists, in a dynamic process of research coproduction

Comparative study on finance‐growth nexus in Malaysia and Indonesia: Role of institutional quality

The impact of financial development (FD) on economic growth in the context of Malaysia and Indonesia has been examined in this study regarding the role of the financial crisis and strategic changes in the institutional setup. Autoregressive distributed lags and threshold regression were applied, and time series data were analyzed for the period between 1984 and 2017 revealing that FD promoted the economic growth in both economies during this period. A nonlinear analysis also revealed that FD and economic growth follow an inverted U‐shape relation in the case of Malaysia whereas, in Indonesia, it followed a U‐shape relation. It was discovered that not all measures of FD promote economic growth. For instance, market capitalization was profound in the Malaysian economy while credit to the private sector and money supply was conducive for the Indonesian economy. The analysis demonstrated that the Asian and global financial crisis adversely affected economic growth in the case of Indonesia due to poor institutional quality (IQ), whereas in Malaysia it was relatively safe from the adversity brought about by the financial crisis due to the presence of IQ and good corporate governance. However, a positive change in IQ was found to have a much greater impact on augmenting economic growth rather than playing a mediating role in connection with FD and economic growth in Malaysia. In the context of Indonesia however, IQ was found to impede economic growth but played a positive and significant mediating role in the nexus of FD and economic growth. The spill‐over analysis revealed that Malaysian FD is positively associated with Indonesian economic growth while Indonesian FD is negatively associated with the Malaysian economy. This study provided all economic and anecdotal explanations in supporting the results of this study

Business Cycle Synchronization of the Visegrad Four and the European Union

In this paper, we map the process of synchronization of the Visegrad Four within the framework of the European Union using the wavelet techniques. In addition, we show that the relationship of output and key macroeconomic indicators is dynamic and varies over time and across frequencies. We study the synchronization applying the wavelet cohesion measure with time-varying weights. This novel approach allows for studying the dynamic relationship among countries from a different perspective than usual timedomain models. Analysing monthly data from 1990 to 2014, the results for the Visegrad region show an increasing co-movement with the European Union after the countries began with preparation for the accession to the European union. The participation in a currency union possibly increases the co-movement. Further, analysing the Visegrad and South European countries' synchronization with the European Union core countries, we find a high degree of synchronization in long-term horizons

Privatization and growth: natural experiment of European economies in transition

European ex-socialist countries’ experience is exploited for two difference-in-differences analysis: effects of a) transition to a market economy, and b) accession to the European Union (EU) on income. Many countries adopting regime change simultaneously; and ten of them joining the EU mostly in 2004 provides a rich setting. Post-privatization growth varies by ex-ante institutional settings - whether they existed as separate countries before 1991 or came into being by break-up of a larger block - and by ex-post aspiration of (and then) joining the EU. We show starkly how unsuccessful was transition to a market economy - it increased income gap of most of them from the US for at least 13 years. The paper shows institutions are important/critical for growth in middle- or high-income countries of Europe also; and better institutions enhance the role of one (rather than all) proximate factor for growth. Using growth accounting, the growth effects are mostly driven by human capital (rather than by TFP). This paper a) presents a nuanced perspective on privatization’s effect on growth, and b) identifies human capital to be the proximate factor through which the fundamental factor of institutions promotes growth