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The Transition to a Market Economy In Context of Competitiveness

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  • Stefan F. Stefanov

Abstract

The article analyses the transition to a market economy and the impact on its competitiveness. On this base the author brings out two strategies for market reform: first, orientation towards increasing competitiveness; second, reallocation, causing decrease in competitiveness because of slowly building of adequate market institutions. It presents comparative analyses on the consequences of implementation of reallocation strategy in Bulgaria and competitive oriented strategy in Hungary. The circumstances and preconditions for transformation from a reallocated to a competitive oriented strategy are defined and on this base three scenarios of market reform perspectives in Bulgaria – optimistic, pessimistic and realistic are outlined.

Suggested Citation

  • Stefan F. Stefanov, 2002. "The Transition to a Market Economy In Context of Competitiveness," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 3-31.
    • Handle: RePEc:bas:econth:y:2002:i:1:p:3-31
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    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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