New structural economics meets European transition |
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Authors: | Erik Berglof |
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Institution: | 1. Institute of Global Affairs, LSE, London, UKe.berglof@lse.ac.uk |
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Abstract: | This paper explores whether new structural economics, and more broadly Structuralist approaches, could add to our understanding of transition in Central and Eastern Europe – and ultimately asks whether new structural economics and transition economics might be extended or integrated into a dynamic model of structural transformation that could better account for this particular development experience and provide policy guidance for the future. We have presented three perspectives – new structural economics, transition economics and the Neo-Schumpetarian approach – all of them emphasising different aspects of structural transformation. Their relative explanatory power depends on the context – for example, the extent of distortions in the economy, the quality of the institutions and where a country finds itself relative to the world technology frontier – and the questions we are interested in understanding. We suggest that, to date, the Neo-Schumpetarian approach offers the most promising and persuasive story line to think about this difficult challenge. |
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Keywords: | new structural economics Central and Eastern Europe transition structuralist approaches transition economics Neo-Schumpetarian approach |
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