This paper investigates the relative importance of three sets of factors - initial conditions, macroeconomic stabilisation and structural reforms - as determinants of growth in transition economies during the first ten years. We ask whether countries that defied the odds, given by their initial...

A positive link between progress in market-oriented reforms and cumulative growth has been recorded across transition countries. This paper shows that progress in transition in one period can significantly affect growth in the subsequent period, and this growth can act as an immediate spur to...