Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320199 
Year of Publication: 
2024
Citation: 
[Journal:] The European Journal of Comparative Economics (EJCE) [ISSN:] 1824-2979 [Volume:] 21 [Issue:] 2 [Year:] 2024 [Pages:] 167-210
Publisher: 
University Carlo Cattaneo (LIUC), Castellanza
Abstract: 
This study investigates the long-term impact of socialism on economic growth, focusing on the unique case of labor-managed socialism in former Yugoslavia. By comparing Slovenia with OECD and East Asian donor countries that did not undergo postwar socialist transitions, we estimate counterfactual scenarios using synthetic control methods. Our findings show that labor-managed socialism led to a temporary growth deviation, followed by a structural collapse in the 1980s. Our estimates suggest that Slovenia's per capita GDP would be 22 percent higher today had there been postwar economic and political liberalization in place. By contrast, if socialist policies had continued after 1990, Slovenia's per capita GDP would be 63 percent lower today. These results remain robust across various robustness checks.
Subjects: 
socialism
economic growth
synthetic control method
comparative long-run development
Slovenia
JEL: 
C21
D70
N14
O43
P51
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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