This book identifies differences and similarities between the formerly centrally planned economies of the Eastern Bloc and those of Western Europe. The authors use up-to-date information on East-West trade flows to analyse emerging patterns of industrial and trade specialisation. They examine in detail the pre- and post-1989 experience of five different CEE economies: the ex-GDR, ex-CSFR, Hungary, Bulgaria and Poland. Enterprise-level information is then used to discuss the impact of the withdrawal of export subsidies from various types of enterprise in Hungary, the changing relationships between enterprises and banks in Poland, the evolution and reform of financial institutions and the vital issue of financial intermediation and industrial restructuring. The book ends with an examination of the case for using Western-style industrial policies in the transition.
• Contains papers by eminent economists from both East and West Europe • Focuses on the longer-run aspects of industrial structural change upon which the success of transition depends • Examines in detail the pre- and post-1989 experience of industrial structural change in five CEE economies
1. Introduction Michael Landesmann and István Székely; Part I. Industrial Structurla Change and East-West Integration: 2. Industrial structural change in Central and Eastern European economies Michael Landesmann and István Székely; 3. Projecting East-West trade integration Michael Landesmann; Part II. Country Studies: 4. Deindustrialisation or reindustrialisation? On the future of the eastern German economy Klaus-Dieter Schmidt and Petra Naujoks; 5. Stabilisation, crisis and structured change in Hungary András Blahó and László Halpern; 6. Industrial restructuring in Czechoslovakia after 1989 Alena Nesporova; 7. Economic transition and industrial restructuring in Bulgaria Rumen Dobrinsky, Nikolay Markov, Boyko Nikolov, and Dimiter Yalnazov; 8. Economic reforms and structural change in Poland Lucja Tomaszewicz and Witold Orlowski; Part III. Enterprise Analysis and Policy Issues: 9. Micro-economic factors of trade reorientation in Hungary, 1981–90 László Halpern; 10. Hardening of the budget constraint for Polish manufacturing enterprises, 1991–3 Marek Belka and Stefan Krajewski; 11. Industrial policy in the transition Michael Landesmann and István Ábel; 12. Financial intermediation and industrial restructuring in Central and Eastern Europe István Ábel and Istvan Székely.
'… a convincing picture on the dilemma of public spending on economic restructuring, which shows that funds for active industrial policy are most restricted in that period when they are most needed. Abel and Szekely point out that the financial sector needs more time before it could play the 'agent of change'.' Jens Hölscher, The Economic Journal