This paper analyses the relationship between income inequality and growth in transition economies. The distinct and complex dynamics adherent to these economies lead to the proposition of new econometric models in the paper. However, empirical results do not support the proposed more flexible nonlinear functions. Further, the Kuznets hypothesis is clearly rejected by our data. On the contrary, ...

Broadly speaking, the role of the financial sector in all economies is to channel resources from primary savers to investment projects. The importance of this financial sector role has received much attention in the recent literature on economic growth. A strong consensus has emerged in the last decade that well-functioning financial intermediaries have a significant impact on economic growth. ...

The existing disappointment with the performance of transition economies is unjustified as far as the contraction of their industries, real wages and capital formation in the 1990s is concerned. The initial under-performance of transition economies that had inherited more severe shortages, as in former Soviet Republics, is to be expected also. We establish these results by estimating what align...

Much work has been done on the efficiency and management development of enterprises in China since the implementation of economic reforms. It has been argued that the problem of skills incompentence of the workforce is one of the fundamental factors hindering the overall performance of enterprises in China, particularly the state-owned enterprises. At the same time, low efficiency performance w...

In this paper we present a two-country dynamic general equilibrium model of ex ante unequally developed countries. The model explains a key feature recently observed in transition economies, i.e. he long-run trend real exchange rate appreciation, through investments in quality. Our exchange rate projections bear important policy implications, which we illustrate on the conflict between the infl...

The goal of this paper is to investigate and better understand the differences in Information Technology Service Management (ITSM) adoption by small and medium sized enterprises (SMEs) between transition and developed economies in Europe. This study draws from research conducted among companies from six countries from Central and Eastern Europe within INNOTRAIN IT project financed by European R...

The capitalist and socialist societies of the 20 century assigned firms different roles within their economic systems. Enterprises transforming from socialist to market economies thus face fundamental organizational restructuring. Many former state-owned firms in the transition economies of Central and Eastern Europe have failed at this task. These firms have pursued primarily defensive downsiz...

This paper presents a model which captures the technological spillovers created by foreign direct investment in Transition Economies. Skill-biased technological change is linked with endogenous labor supply which allows for unemployment. The technological spillover is divided into a neutral technological change and a skill-biased technological change. The first effect makes labor and capital mo...

A sharp rise of income inequality in the transition countries has caused a wide-ranging discussion about the factors affecting inequality. The present paper investigates a number of factors that influence income inequality in the transition countries. The main contribution of the study lies in its different approach to analysing these factors. While previous studies have either mainly focussed ...

There is a growing consensus that aid has not improved economic growth and market institutions among developing nations (Boone 1996, Knack 2001, Collier and Hoeffler 2004, Heckelman and Knack 2008, Rajan and Subramanian 2008). Far less attention has been paid so far to the ability of aid to promote and support democratization. The effect of foreign aid on democratization is theoretically ambigu...