Revealed in Transition: The Political Effect of Planning's Legacy

Arbeitspapier

Decades of investment decisions by central planners left communist societies with structures of production ill-prepared for competitive markets. Their vulnerability to liberalization, however, varied across space. Similar to the effects identified in the "China shock" literature, we hypothesize that post-market-shock outcomes will reflect pre-market-shock structures of production. Tracking voting outcomes at the district level in Russia's presidential elections, we document asymmetric reactions to the liberalization of markets in 1992. Electoral support for the pro-market incumbent declined most in areas with structural inheritances that made them most vulnerable to reforms. This finding sheds new light on an old debate about the importance of "initial conditions" (as opposed to policies) to the trajectories of post-communist societies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 9929

Classification and Topics

• Classification: Wirtschaft ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: Pre-1913 ; Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: Europe: Pre-1913 ; Health and Economic Development ; Economic Development: Human Resources; Human Development; Income Distribution; Migration
• Subject: industrial structure ; transition economy ; voting ; Russia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Natkhov, Timur ; Pyle, William
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/265964
• Last update: 10.03.2025, 11:43 AM CET