Structural Change and Transformation within the Transition Economies (original) (raw)
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Transition and international integration in eastern Europe and the former Soviet Union
2003
This paper investigates the extent of integration of the transition economies into the world economy. We find that south-eastern Europe (SEE) and the Commonwealth of Independent States (CIS) trade significantly less with the world economy than the accession countries. We use a gravity model to explain why this is the case and conclude that the low quality of economic institutions in the CIS, and hence the high risks associated with trade, explain a considerable proportion of the "trade gap" compared to trade levels in industrialised countries. Moreover, the landlocked nature of many CIS countries (and hence high costs of transport and transit) is another reason for the lack of integration. In SEE these factors play a lesser role and the gravity model is unable to fully explain the lack of integration, which we suggest is a legacy of the region's recent turbulent past. The paper suggests that a combination of improved market access to western markets and efforts to reduce trade and transit barriers within the region provide the best hope to increase economic integration with the world economy in the future.
Central and Eastern Europe in Transition
Contemporary Economic Policy, 1992
zur Erlangung des akademischen Grades doctor rerum politicarum (dr. rer. pol.) im Fach Volkswirtschaftslehre eingereicht an der Wirtschaftswissenschaftlichen Fakultät
Advances in Spatial Science, 1999
Eight years after the fall of the Berlin Wall and the Iron Curtain economic and political cleavages are still visible in Europe. With respect to social and economic transition the saliency of the problems seem to increase, as the efforts to solve the problems become the common business of governments and international organizations. Regional economic and political integration have significant impacts on this process, namely through the European Union programs for restructuring and development. The purpose of this paper is to analyze the main problems in the process of transition and reintegration has to so overcome from a theoretical and conceptual point of view. The theoretical anchors political and economic theories of regional integration. After a period with declining attention, regional integration has again become topic in various parts of the world. Concepts of integration are still pivotal in Europe, partly regarding the internal development of the European Union, partly as a framework of cooperation between the EU and the rest of Europe. Based on the analysis of the concepts of Regional Economic Cooperation in Europe, the links between international economic integration and internal development are analyzed. The relationship between macroeconomic integration and the necessary of providing instruments to cover specific areas or sector from significant adverse effects of this process is given special attention in the analysis. This part of the analysis will focus on the needs for restructuring of existing EU-policies to meet the challenges of the next enlargements. The theoretical concepts will be used for a principal evaluation of the needs for a future regional policy for an enlarged community. The process of transition and recovery in East Europe has been challenged not only by the regained influence of traditional political groups in East Europe but also through the reluctance of the EU to open their markets in sectors where the former CMEA-countries are competitive. To avoid further drawbacks it seems necessary to establish a self sustainable economic system able to handle external (i.e. the process of enlargement) as well as internal (i.e. the structural funds) demands for restructuring. The first precondition is the opening of western markets. The second is to provide a reliable regime for development and knowledge transfer. Last but not least, the paper stress' the need to establish a reasonable framework for cooperation until the East and Central Europe can participate on equal terms in the mainstream of European Integration, and to handle the different waves of membership negotiations in a reliable way.
Post-Communist Economies, 2001
In this article we examine the main factors in uencing trade and FDI ows between the transition countries of the Central European Initiative (CEI) and the EU member states. We distinguish three groups of CEI countries, according to the degree of trade and FDI integration with the EU: the 'fast mover' countries, the 'next tier' countries and the 'slow movers'. By estimating a number of trade and FDI equations we were able to locate the signi cance of alternative variables which affect the ows of trade between the CEI countries and the EU. According to our results, the low volume of trade and FDI between the 'next tier' and 'slow movers' of the CEI region, on one hand, and the EU, on the other, is a re ection of the fact that these particular countries have not yet achieved adequate institutional and economic reform while, at the same time, privatisation has not progressed as much.
Changing Development Prospects for the Central and Eastern European EU Member States
SSRN Electronic Journal, 2013
One of the fundamental goals of European integration is to provide less-developed member states opportunities for convergence and strengthen economic and social cohesion. Before the crisis the convergence process was impressive in the new member states. This success raises the question of how the institutions of the new EU member states match the institution types previously worked out for the old member states, and whether they resemble any of the broadly accepted four models of capitalism (Anglo-Saxon, Nordic, Continental European and Mediterranean) or represent a new type of model. Empirical analysis suggests that an independent Central and Eastern European model is eligible for existence. The characteristics of the model may be derived from three main factors: the lack of capital, weak civil society and the impact of the European Union and other international organisations influencing the new member states. FDI inflow could help to reduce the lack of capital. The success of convergence can be explained through the reconfiguration of the value chain after the collapse of communism by companies located in Continental and Northern Europe. These companies located their assembly activities in Central and Eastern Europe, and these countries could integrate not only within the EU but also within the world economy through increased investment and productivity. Although this convergence model has its limits, it provided sufficient space for the Central and Eastern European countries to develop, due to their low initial GDP levels. During the crisis the convergence has slowed down. The forthcoming period makes some changes in the convergence model necessary. The reduction in the private sector savings-investment gap is unavoidable. Savings must be used more efficiently than in the past. These suggestions are known in literature. However, two other important factors should also be taken into consideration. Failing to bridge the current productivity gap between foreign and domestic companies makes catching-up impossible. Population ageing and increased net migration from the Central and Eastern European countries has reached the level which demolishes their economic potential and destabilizes their societies in the medium and long run. These issues mean severe challenges on both national and European level.
Transition in Central and Eastern Europe
1996
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