Industrial Growth Rates and Instability: An Historical Analysis of the Former Centrally Planned Economies of Eastern Europe
Journal Title: Eurasian Journal of Business and Economics - Year 2011, Vol 4, Issue 8
Abstract
One of the central tenets of socialism and central planning economics, as practiced by the East European countries, was that this organization of employment, production and activity could achieve higher growth rates than market economies. This paper presents an historical analysis of economic performance of seven countries: Bulgaria, Czechoslovakia, GDR, Hungary, Poland, Romania and Yugoslavia during the crucial period of socialism (1960-80). It studies the relationship between industry output growth rates and output instabilities in approximately twenty-five industries. Using empirically estimated models it was found that the instability (volatility) of industry output increased with growth rates and at an increasing rate. Since instability creates substantial costs, these findings imply that the true value of income and product streams in East European countries, after discounting for instability, was lower than otherwise believed. A decomposition of instability into two sources, systemic structure versus operational implementation is suggested.
Authors and Affiliations
Evan E. ANDERSON
Keywords
Related Articles
- EP ID EP441490
- DOI -
- Views 82
- Downloads 0
Industrial Growth Rates and Instability: An Historical Analysis of the Former Centrally Planned Economies of Eastern Europe
One of the central tenets of socialism and central planning economics, as practiced by the East European countries, was that this organization of employment, production and activity could achieve higher growth rates than...
Bank Performance and Efficiency in Uzbekistan
The development of financial system in Uzbekistan over the last decade puts lots of challenging tasks for the managers of this financial institutions and regulatory bodies. These tasks on its turn demand application...
Bookkeeping in Manor Farms of Polish Gentry in 17th Century
The work concerns the bookkeeping solutions used in Polish farms in the 17th century. On the basis of the source texts analysis three approaches to bookkeeping can be distinguished. Bookkeeping was considered to be: • an...
Who is Trading Well in Central Asia? A Gravity Analysis of Exports from the Regional Powers to the Region
Since early 90s major regional powers have attempted to increase their export flows to Central Asia. This paper assesses the volume of recent export flows from China, India, Iran, Russia and Turkey to countries in Centra...