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Institutional persistence or reform: self-enforcing modernization and stagnation in transition countries

Pavletic, Ivan and Sattler, Thomas (2009) Institutional persistence or reform: self-enforcing modernization and stagnation in transition countries. In: 5th ECPR General Conference, 10-12 September 2009, Potsdam Universität, Potsdam, Germany.

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Abstract

We present an empirical model that explicitly accounts for gradual, dy- namic transition processes in post-communist countries. Simulation results based on this model re ect the diverging transition paths of these countries, which include quick democratic consolidation, political stagnation and rever- sals and the collapse of the transition mechanism. Which path a country takes depends on the constellations in the political and economic arena at the out- set of the transition process. Successful endogenous simultaneous transition requires that a considerable degree of political competition exists. Citizens then push for economic reforms when confronted with an economic downturn. Due to the complementarity of economic and political reforms, economic liber- alization encourages further political reforms, while delays in economic liber- alization can halt democratic consolidation. Political stagnation and reversals thus occur when economic reforms lags behind political reforms because the lack of economic competition impedes democratization. The reform process collapses in countries with little political competition.

Item Type: Conference or Workshop Item (Paper)
Official URL: http://www.ecprnet.eu/conferences/general_conferen...
Additional Information: © 2009 The Authors
Library of Congress subject classification: D History General and Old World > DJ Netherlands (Holland) > DJK Eastern Europe
H Social Sciences > HC Economic History and Conditions
J Political Science > JN Political institutions (Europe)
Journal of Economic Literature Classification System: P - Economic Systems > P2 - Socialist Systems and Transitional Economies
P - Economic Systems > P3 - Socialist Institutions and Their Transitions
Sets: Departments > International Relations
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 17 Jul 2012 10:35
URL: http://eprints.lse.ac.uk/41851/

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