Research on Poverty in Transition Economies: A Meta-analysis on Changes in the Determinants of Poverty

Abstract

Research on the increase in poverty in the transitional economies affected by the collapse of socialism began soon after the economic transition began. However, the nature of poverty in the former Soviet Union and Central and Eastern Europe differs, and two phases have been observed: a phase of increasing and stabilising poverty in the 1990s and a phase of declining poverty in the 2000s. Taking into account the possibility that the impact of household size, education level, and urban domicile, which are factors employed in traditional poverty research, may differ depending on the year or the region, this paper attempted a meta-analysis. The results enerally supported the hypothesis. In the 1990s, there was no difference between urban and rural populations in the probability of falling into poverty. After 2000, however, urban domicile became a significant factor in reducing the probability of falling into poverty. In addition, differences were observed between the former Soviet Union and Central and Eastern Europe in the factors affecting the poverty situation. This phenomenon is considered to indicate one of the directions for research in comparative transitional economics in the future. Furthermore, the trend in poverty dynamics seen here can probably also be regarded as indicating steady progress in “transition”.