SOME PECULARITIES OF GROWTH IN THE COURSE OF TRANSITION

• Main Authors: NATASHA TRAJKOVA-NAJDOVSKA, SNEZANA OBEDNIKOVSKA
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2017-12-01
• Series: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Subjects: transition; growth; developed economies; less developed countries.
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2017-06/14_Trajkova.pdf

Transition is described as a unique process of transformation of the former socialist countries from a system of central planning to a free market economy. It encompassed various changes in social, political, institutional and economic life in former socialistic countries, resulting in various paths of recovery and growth among transition economies. Having in mind it exceptionality, there was no already made theory that explained all the movements in the course of transition. Instead, most of the transitional studies of growth adhered to existing paradigms, neoclassical and new growth theories rooted in the reality of developed industrialized economies, or paradigm of development theories related to growth in less developed countries. This study challenges the conceptual framework commonly used to study growth and develops a theoretical debate claiming that transition processes stands apart from the typical development of a market economy. Namely, many of the assumptions of the growth theories which are rooted in reality of a developed market economy; do not accommodate transition reality accurately, which consequently challenges their application to the analysis of growth in transition context. Hence, the inference suggest that the application of the growth theories to explore growth in the course of transition, should take into consideration all the restraints, and also should consider adjusting and relaxing many of the assumptions of the models of growth in order to fit the transition reality properly.