The role of progress factors explaining inefficiencies in Transition countries

Abstract

This paper examines whether progress in transition has a significant effect on the economic efficiency for 24 transition countries from 1990 to 2006. It uses nine progress factors to analyze the role of the progress factors to explain inefficiencies. It also questions the effect of the transition countries that recently joined the European Union on efficiency. The results suggest that the average efficiency scores for EU-N10 are much higher than the average efficiency scores for SEE/CIS. The scores increase over time for both groups of transition countries. Reforms also contribute to efficiency in general.