By Oleh Havrylyshyn
From The Centre for European, Russian, and Eurasian Studies
Abstract: All transition countries experienced a sharp decline in output in the early 1990s. Central Europe and the Baltics began to recover around 1993–95, while GDP decline continued elsewhere. Econometric analysis of growth determinants explained this by the fact of earlier inflation stabilization, market liberalization, and institutional development, though there was disagreement in the literature as to the effect of initial conditions and the sequencing regarding liberalization and institutions.