published in: Structural Change and Economic Dynamics, 2004, 15 (1), 47-81
The transition to market-based economic systems in the countries of Central and Eastern
Europe and the former Soviet Union involves fundamental shifts in the allocation of resources
and deep changes in the structure of production and employment. This paper uses a simple
model of economic development and structural change with technology spillovers to
benchmark structural change in the transition economies and simulate the path of adjustment
from central planning. We then analyse data from 10 accession candidates and 12 CIS
countries to measure the progress in structural change that has taken place thus far and to
assess the further structural changes that should be expected, with particular attention to the
implications for accession.
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