World growth caused by the shift from communism to capitalism, 1961-2021- difference-in-differences model
DOI:
https://doi.org/10.18041/1657-2815/libreempresa.2022v19n1.9423Keywords:
Economic growth, Communist, Capitalist, Policy, Difference in differenceAbstract
The application of the difference-in-differences model to evaluate the impact on the real growth rate of world GDP as a result of the change from the communist economic system to the capitalist given in Eastern Europe and in several countries in Asia, confirms an improvement in the average growth of 88 countries, ex-communists and capitalists in the period 1961-2021. The year of change was 1991, however, models were run with breaks in 1991, 1996 and 2000, considering that the impact of politics would take several years to take its effect. It is concluded that the world economy grew as a result of system change despite the crises of 1994, 1997, 1998 and 2008.
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