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Transitional Progress and Business Challenges

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  • Jennifer Foo
  • Dorota Witkowska

Abstract

Eight Central European and Baltic countries have joined the European Union in May 2004. Transitioning economies need to develop a business environment with a healthy financial sector to realize economic growth. This paper uses two classification methods, the discriminant analysis and taxonomic measure, to investigate the possibility of the South Eastern European and Commonwealth of Independent transitional countries to develop an enterprise and business environment that is compatible with the newest European Union (EU8) members. This paper found that the EU8 countries are correctly classified as having transitioned successfully in their business development. Bulgaria and Croatia have transitioned closely to the EU8. However, Romania, Ukraine, and the Commonwealth of Independent countries are not close to the EU8 in achieving a compatible business environment. Copyright International Atlantic Economic Society 2008

Suggested Citation

  • Jennifer Foo & Dorota Witkowska, 2008. "Transitional Progress and Business Challenges," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(2), pages 215-227, May.
    • Handle: RePEc:kap:iaecre:v:14:y:2008:i:2:p:215-227:10.1007/s11294-008-9136-0
    DOI: 10.1007/s11294-008-9136-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Transition countries; Enterprise reforms; Business structures; Taxonomic methods; Discriminant analysis; O57; C10;
    All these keywords.

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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