Determinants of economic growth rates of the newly formed countries of the former Soviet Union and Eastern Bloc

摘要

This study first tests the equality of the means of GDPs among countries that joined market economies after the collapse of the Soviet Union using the analysis of variance (ANOVA) method. Then it examines whether GDPs are converging as predicted by the neoclassical growth theory. Finally, it identifies the factors that contribute to the persistent difference. Panel data analysis is used to address the latter concern. The growth rates of countries in the study are not converging. There is an evidence of conditional convergence and the stage of development provides an explanation and supports club convergence. All identified factors are statistically significant.