Economic Transition in Central and Eastern Europe

Abstract

Analysing the key problems facing the transition countries in Central and Eastern Europe, this accessible book describes the legacy of the central planners, the progress achieved so far and the need for further reforms. It documents the outstanding successes and failures, and analyses why certain approaches to transition have worked and others have not. It tests where transition is over and shows how some countries have graduated from 'transition' to 'integration' through their efforts to join the European Union (EU). It discusses the costs and benefits of the eastern enlargement of the EU. The specific experiences of German unification, the Soviet Union's disintegration, and Russia's complex reforms are examined, as are the specific issues that need to be addressed in the Balkans. The book concludes by indicating how the expanding EU could help the poor performers through inclusion in a continent-wide integrated economic area.

Size matters: entrepreneurial entry and government

“…One can find countries which have implemented a relatively efficient system of property rights, while their financial system remains underdeveloped, for example some of the countries that switched from a command to market economy. In these cases, entrepreneurs may be unable to carry through their projects, either because the cost of finance is too high or because they face binding financial constraints (Gros and Steinherr, 2004;Mickiewicz, 2005). The findings on this issue in the empirical literature are mixed.…”

Hierarchy of governance institutions and the pecking order of privatisation: Central–Eastern Europe and Central Asia reconsidered

“…Empirical tests provided by Di Tommaso et all. (2007) suggest that the effect of the EU accession process on reforms is very strong, even if some additional reverse, feedback effects are also possible (see also Havrylyshyn, 2006;Gros and Steinherr, 2004). Also, the impact of political reforms on economic reforms is well established in empirical studies (see: Falcetti et al, 2002;Mickiewicz, 2005).…”

“…Kazakhstan), the European Union remains the gravity centre both for trade (Gros and Steinherr, 2004), and for potential institutional learning.…”

Modelling Inflation in China - A Regional Perspective

“…As Gros and Steinherr (2004) point out, under central planning the demand for funds for investment is almost unlimited, and there is no price mechanism to allocate them. The distribution of financial resources is decided by the government based on political priorities.…”