The success and failure of reforms in transition economies

Stephen Lawrence Parente, José Víctor Ríos-Rull

Research output: Contribution to journalReview articlepeer-review


This paper argues that an important reason why Russia's performance and China's performance under capitalism have differed dramatically is that different arrangements governing the determination of prices and work practices evolved during the transition process. In Russia, the arrangement, which conferred monopoly rights to industry groups leftover from socialism, prevented the adoption of better technology. In China, the arrangement that evolved contained no such monopoly elements. The key factor in determining which arrangement evolved was the strength of the central government. We put forth a model that implements these ideas and provide evidence in support of this theory.

Original languageEnglish (US)
Pages (from-to)23-42
Number of pages20
JournalJournal of Money, Credit and Banking
Issue number1
StatePublished - Feb 2005


  • China
  • Competition
  • Economic transition
  • Monopoly
  • Russia

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'The success and failure of reforms in transition economies'. Together they form a unique fingerprint.

Cite this