Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Determinants of social expenditures in post-socialist countries
Issue: Vol. 12, No 2, 2019
Published date: 06-2019 (print) / 06-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Hyejin Ko
Korea Institute for Health and Social Affairs

Kichae Min
Korea National University of Transportation
Keywords: post-socialist countries, social expenditure, welfare state, linear regression with panel-corrected standard errors
DOI: 10.14254/2071-789X.2019/12-2/15
Index PUBMS: 7e80038b-ad4c-11e9-bbfd-fa163e0fa1a0
Language: English
Pages: 253-264 (12)
JEL classification: D02, O17, P31

This study compares the development of the welfare state between Western capitalist countries and a selection of post-socialist countries of both Asia and Europe by examining the determinants of social expenditures in those. A pooled time-series, cross-sectional analysis with panel-corrected standard errors was conducted on the determinants of social expenditures in 21 post-socialist countries: Albania, Azerbaijan, Belarus, Bulgaria, Croatia, Czech, Estonia, Georgia, Hungary, Kazakhstan, Latvia, Lithuania, Moldova, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Ukraine, and Uzbekistan, using 2005 to 2017 data. It was found that, as in Western societies, democratic and welfare systems are more developed in post-socialist states than in welfare states. However, the effects of socialist heritage and globalization differ, depending on the degree of economic development of the country concerned. While in the OECD countries, globalization leads to the development of the welfare state, in non-OECD countries, socialist heritage is an enabling condition for development of the welfare state.


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