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Laboratoire
de Recherche
en Gestion LARGE
LARGE
Economie
Papier
Papier
n° 68
On the Backwardness in Macroeconomic Performance
of European Socialist Economies
Laurent Weill
Faculté des
sciences économiques
et de gestion September, 2004
PEGE
61, avenue de la Forêt Noire
67085 STRASBOURG Cedex
Tél. : (33) 03 90 24 21 52
Fax : (33) 03 90 24 21 51
www-ulp.u-strasbg.fr/large
On the Backwardness in Macroeconomic Performance
of European Socialist Economies
Laurent Weill¤+
Université Robert Schuman, LARGE
Abstract:
This paper aims to compare the macroeconomic performance of three European socialist economies
(Hungary, Poland, Yugoslavia) with developing and developed countries during the eighties. Using panel data
for 87 countries, we measure macroeconomic performance with two frontier efficiency techniques: the stochastic
frontier approach, and the time-varying WITHIN model proposed by Cornwell, Schmidt and Sickles (1990). We
conclude in favor of the underperformance of socialist countries in relation to developed countries but also to
developing countries, which may be explained by the features of the socialist economic system.
Keywords: productivity analysis, socialist system, stochastic frontier approach, growth.
JEL Classification : C21, C23, O4, P20.
¤ Corresponding author: Laurent Weill, Université Robert Sc
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