Testing for Ongoing Convergence in Transition Economies, 1970 to 1998

In this paper, the authors use a time-varying parameters procedure to test for a common growth path in the ex-Communist bloc, both pre- and postreform. They test whether there has been convergence within the bloc or between the bloc as a group and the West. Surprisingly, there is little evidence of convergence within the bloc, which brings into question the effectiveness of policies to reduce differentials in income per capita under the Communists. There is also little evidence of convergence with respect to the West, either during the period from 1970 to 1990 or if the reform years are included (i.e., 1970 to 1998). J. Comp. Econ., December 2001, 29(4), pp. 677–691. © 2001 Elsevier ScienceJournal of Economic Literature Classification Numbers: O40, C22, C23, C15.