European Regional Science Association
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European Regional Science Association
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The abstract for paper number 296:
Maria Badita
Academy of Economic Studies
The Romanian Association of Statistics, Bucharest, Romania, Daniela Serban
Academy of Economic Studies
The Romanian Association of Statistic, Bucharest, Romania, Silvia-Elena Cristache, The Romanian Association of Regional Sciences
Academy of Economic Studies
The Romanian Association of Statistic, Bucharest, Romania
Transition into the market economy – Comparative regional study in the ex-communist countries
The research objectives is to aply the Factorial Analysis Method in order to estimate the latent variables characterizing the complex nature of the transition to the market economy of the Est-European countries. The latent variables of the transitions are considered to be :
- the command economy status at the beginning of the transition - economic reforms - institutional reforms - the political environment
The Factorial analysis concerns all the ex- communist countries which are in the transition into the market economy. The factorial method has the advantage of empirical testing of the hypothesis on the set of measures used to characterize the transition process.
The main conclusions are:
- we have obtained global measure characterizing the transition system in the ex-communist area, allowing also regional differences measures. The main categories we have taken into account are: the price system, which is in the transition to a free market; the state-owned companies which are in the process os privatization; the banking system, also to be privatized; and the political system based on many parties and free elections - the nonrepresentativity of the survey data may induce the lack of significance of the aggregated measures observed.
This situation may occur when we try to estimate the latent factors of the structural economic balance. The research stresses the empirical difficulties of the estimation. The lack of data induce the possibility to construct theoretical models inspide of the fact that the factorial analysis method has a high potential to validate the measures. The lack of data charactises the legal and the influences of the political environment over the economic area.
Key words: market economy, transition process, latent variable, factorial analysis, structural modelling
Unfortunately full paper has not been submitted.