Economics and Business Review

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e-ISSN 2450-0097

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Volume 1 (15) Number 1 pp. 69-88

Ilaria Petrarca, Roberto Ricciuti

1University of Verona, Department of Economics, Verona, Italy

Synthetic ‘real socialism’: a counterfactual analysis of political and economic liberalizations

Abstract:
We evaluate the effect of the 1989 shock over economic development in four
Eastern European countries. We apply a counterfactual approach and define the shock
alternatively as the trigger for economic openness, political competition, or both. The
main result is an effect of economic freedom larger than the one of democratization. In
Poland and Bulgaria we find a positive impact of economic freedom, whilst in Bulgaria
there is also a smaller effect of democratization. In Albania, after an initial recession,
economic freedom helps recovery. Finally Romania does not show any robust effect.
pub/2015_1_69.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume15/issue1/2015_1_69.pdf
Keywords: economics of transition, synthetic control estimator, democratization, economic freedom

DOI: 10.18559/ebr.2015.1.6

For citation:

MLA Petrarca, Ilaria, and Roberto Ricciuti. "Synthetic ‘real socialism’: a counterfactual analysis of political and economic liberalizations." Economics and Business Review EBR 15.1 (2015): 69-88. DOI: 10.18559/ebr.2015.1.6
APA I.1, P., & R.1, R. (2015). Synthetic ‘real socialism’: a counterfactual analysis of political and economic liberalizations. Economics and Business Review EBR 15(1), 69-88 DOI: 10.18559/ebr.2015.1.6
ISO 690 PETRARCA, Ilaria, RICCIUTI, Roberto. Synthetic ‘real socialism’: a counterfactual analysis of political and economic liberalizations. Economics and Business Review EBR, 2015, 15.1: 69-88. DOI: 10.18559/ebr.2015.1.6