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Beyond the EuromaidanComparative Perspectives on Advancing Reform in Ukraine$
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Henry E. Hale and Robert W. Orttung

Print publication date: 2016

Print ISBN-13: 9780804798457

Published to Stanford Scholarship Online: May 2017

DOI: 10.11126/stanford/9780804798457.001.0001

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Economic Reforms in Ukraine in Comparative Perspective: Formal and Informal Dimensions

Economic Reforms in Ukraine in Comparative Perspective: Formal and Informal Dimensions

Chapter:
(p.245) 13 Economic Reforms in Ukraine in Comparative Perspective: Formal and Informal Dimensions
Source:
Beyond the Euromaidan
Author(s):

Alexander Libman

Anastassia Obydenkova

Publisher:
Stanford University Press
DOI:10.11126/stanford/9780804798457.003.0013

Alexander Libman and Anastassia Obydenkova set out inductively to identify the countries whose economies are most similar to Ukraine’s using a hierarchical cluster analysis of indicators of the micro-level institutions, such as obtaining permits, registering property, and enforcing contracts. This analysis indicates that in terms of formal institutions, Ukraine performs like a country of southeastern Europe, while in informal terms, it looks more like the other post-Soviet states. While the formal institutional environment in Ukraine has improved, perceptions of the business climate have worsened. This highlights the disconnect between formal institutions and informal practices. They stress that government cannot directly change informal practices—it can only change formal rules or personnel.

Keywords:   Economic Reform, Formal Institutions, Informal Practices

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