Size of Government and Economic Growth: A Convergence Analysis of Former Soviet Union Countries from 1991 to 2018
There are 15 independent countries that emerged (re-emerged) from the Union of Soviet Socialist Republics since its collapse in 1991. The process of independence of the Former Soviet Union (FSU) countries was followed by massive economic, political, and institutional reforms that, in most cases,...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2024-11-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3370.pdf |
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| Summary: | There are 15 independent countries that emerged (re-emerged) from the Union of Soviet
Socialist Republics since its collapse in 1991. The process of independence of the Former
Soviet Union (FSU) countries was followed by massive economic, political, and institutional
reforms that, in most cases, sought the transition from centralised systems to market
economies. This paper uses the club convergence method developed by Phillips and Sul
(2007, 2009) to analyse convergence in terms of size of government and economic growth
between 1991 and 2018 for 14 FSU countries: Armenia, Azerbaijan, Belarus, Estonia,
Georgia, Kazakhstan, Kyrgyzstan, Lithuania, Latvia, Russia, Tajikistan, Turkmenistan,
Ukraine, and Uzbekistan. The results suggest the existence of two convergence clubs in terms
of size of government. In both groups, the government spending has been reduced until 2008,
followed by a stabilisation process. Turkmenistan is the only non-convergent country to any
club. Likewise, there are three different convergence clubs in terms of GDP per capita. The
analysis of economic convergence and the size of government in the FSU countries provides
valuable insight into their path to sustainability. Economic efficiency, social equity, and
institutional stability are essential components that these countries must strengthen to achieve
long-term sustainable development |
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| ISSN: | 1582-9146 2247-9104 |