ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2008
  • © Brno University of Technology, 2002-2008
  • © University of Latvia, 2002-2008
Democracy and Economic Growth: the Experience in Southeast Europe
Shahdad Naghshpour, Bruno S. Sergi

ABSTRACT. The economic realities of Southeast Europe changed, once again, in the 1990s. The joy of independence was followed by the grim reality of loss of productivity due to turmoil. All five countries studied in this paper experienced real loss of standard of living immediately after declaration of independence. In some cases, such as Albania and Hungary, the decline was short-lived. In other cases, especially in Yugoslavia and to some extent in Bulgaria, the recovery was ongoing as of 2006.

The growth trends of real GDPs before and after the collapse of communism are examined via spline trend analysis to determine if the patterns have changed. Furthermore, the structural stability of the trends of each country are tested.

KEYWORDS: economic growth, democracy, Southeast Europe.

JEL classification: 011, 040, 052, P30.

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Scholarly papers Transformations in Business & Economics
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