Havrylyshyn and van Rooden (2003) conclude that "achieving macro-economic stabilisation and implementing broad-based economic reforms remain the key determinants of growth in transition economies". How do they capture stabilisation and economic reforms in their empirical work?

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Question restated: Havrylyshyn and van Rooden (2003) conclude that 'achieving macro-economic stabilisation and implementing broad-based economic reforms remain the key determinants of growth in transition economies'. How do they capture stabilisation and economic reforms in their empirical work?

Option a: They use data from different sources including the EBRD transition indicators and national statistics. This option is partly plausible because empirical work often relies on multiple sources, including national statistics; however, the key emphasis in their work is specifically on established transition indicators from major institutions. The wording here is broad and not as precise as the source material, which points to a more targeted set of indicators rather than a wide mix of national stats alone.

Option b: They use transition indicators from the World Bank and the EBRD. This aligns with common practice in studies of transition economies, where researchers rely on standardized transition indicators compiled by major international agencies to measure progress in stabilisation and reforms. The World Bank and the EBRD are the typical sources referenced in empirical assessments of transition dynamics, making this option a strong, precise match to the described empirical approach.

Option c: They constructed their own indicators. While some authors do create bespoke indices for specific analyses, the cited conclusion is usually supported by established transition indicators rather than entirely new, self-constructed metrics. This makes option c less likely given the emphasis on well-known transition metrics in the literature on transition economies.

Option d: They use data from difference sources including the Heritage Foundation, Freedom House and the World Bank. This combination is less standard for directly capturing macroeconomic stabilisation and broad-based reforms in transition economies. Heritage Foundation and Freedom House focus more on political rights, civil liberties, and governance quality, which are only indirectly related to macroeconomic stabilization and reforms, whereas the core empirical work on transition indicators typically centers on World Bank and EBRD metrics.

In summary, option b most precisely reflects the empirical approach described, with stabilization and reform captured through established transition indicators from the World Bank and the EBRD, while the other options either broaden the data sources beyond the standard indicators, suggest self-constructed measures, or mix in sources that are less directly tied to macroeconomic stabilization and reforms.

Havrylyshyn and van Rooden (2003) conclude that "achieving macro-economic stabilisation and implementing broad-based economic reforms remain the key determinants of growth in transition economies". How do they capture stabilisation and economic reforms in their empirical work?

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