Transition Countries Economic Growth

Since last decade of 20 century, the political, economic and social reforms in transition economies have been dramatically attractive to the economists and policy-makers in the world. This dissertation focuses on the economic transition, especially in the field of economic growth and its determinates in Central East European Countries and Commonwealth of Independent states. In the last part I also investigate the growth and development in China, however the research is limited in some concrete aspects.Though it seems quite abundant in literature after over ten-year research working, there is still some blanks left in the field of analyzing economic growth in transition countries. The empirical works have resulted in undevelopment, because of lacking reliable data and theoretical supports, compared with the metric-economic studies in other sectors. Therefore, I plan to do some constructive work in this field, using the augment model based on neoclassic economic growth theories. Labor force, investment, technical progress, capital flows, trade liberalization and institutional factors will be comprehensively discussed subject to the economic growth during transition from 1990 to 2003.Chapter one describes the research objects, purposes and reproaches of the dissertation. Chapter two examines the neoclassical growth model and makes an augment to Solow (1956) Model in order to apply for the empirical analyses in transition economies. Chapter three tests the relationships respectively between financial developments. Capital accumulations, trade liberalization and economic growth. Chapter four investigates the incentives that labor force and technological advances impulse on economic growth. Chapter five focuses on the effects of some institutional factors on growth, such as the establishment of market oriented systems and the affairs of WTO accessions in transition countries. Chapter six argues about some issues of economic developments in China.Firstly, studies on transition economies are certainly different from those ofother developing countries, not only the reproaches but also the results. It seems that there are some particular factors, which produce the significant impact to the economic growth during transition periods. As a whole, resolving the serious unemployment, attracting FDI, accelerating the process of finance and trade liberalizations, rebuilding economic constitutions and world multilateral trade system might be the most important incentives to economic growth in transition countries.Secondly, trade liberalization and foreign capital inflow (particularly FDI) will be an inevitable direction to the reforms and developments in transition economies. In the progress of economic opening faced to the world market, CEE countries march aggressively and eight members of them have already joined into EU. However CIS countries such as Russia, Ukraine, and Kazakhstan have still been outside of WTO.Thirdly, according to my research, technological advances show insignificant effects on economic growth. There are also no evidences of higher R&D inputs resulted in more innovations and higher capacity of technical absorptions. The accumulations of human capital in transition countries are of less importance, compared with the function of employment growth and work force.Fourthly, the variables of transitional status and WTO accession, which motivate designed in my dissertation, have been approved to be determinates of economic growth. Economic transitional status variable describes some potential and endogens factors, while transformation for CEMA to WTO might be a testimony of the acceptance of world economy.