From transition to market: Evidence and growth prospects

Abstract

This paper presents evidence on the behavior of output and inflation in the transition economies during 1992-95. A regression analysis explores the differences in output performance across the transition economies during this period. The paper then engages in a numerical, somewhat speculative, exercise to assess the long-run growth potential ofthe transition economies. It concludes that it should take about 20 years for the faster reformers to reach current OECD per capita levels.Transition, growth, Eastern Europe, output, inflation