Comparative Economic Studies

TABLE 3

FROM:

Institutions Matter in Transition, But So Do Policies

Oleh Havrylyshyn and Ron van Rooden

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Table 3. Results from the principal component analsysis

ComponentVariation ProportionCumulativeCorrelations VariablePR1
I. All indices (excluding EBRDri and WB)
PR10.8730.873HERgen0.95
PR20.0450.918HERleg0.91
PR30.0360.954FRleg0.99
PR40.0260.980FRec0.96
PR50.0120.993FRdem0.98
PR60.0050.997FRpol0.94
PR70.0020.999EBRDleg0.87
PR80.0011.000EUR0.87
     
II. Legal framework indices
PR10.8690.869HERleg0.92
PR20.1000.968FRleg0.97
PR30.0321.000EBRDleg0.90
     
     
III. Political framework indices
PR10.9830.983FRdem0.99
PR20.0171.000FRpol0.99

 Sources: Heritage Foundation, Freedom House, Euromoney, EBRD

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