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The Limits to Dependent Growth in East-Central Europe
[Les limites d’une croissance économique dépendante en Europe centrale et orientale]

Author

Listed:
  • Myant, Martin

Abstract

Between 1990 and 2017 the four central eastern European countries (CEECs), Czechia, Hungary, Poland and Slovakia narrowed the gap in economic levels with the EU average. The key driver in most of this period was inward foreign direct investment (FDI) by multinational companies (MNCs), which brought success for export-oriented manufacturing activities. This justifies a characterisation of the resulting variety of capitalism as “dependent”, following theories of dependent development used for Latin America. However, this development brought rapid growth only for a time, still leaving a substantial lag relative to western Europe. The potential for further growth is investigated with an analysis of the strategies pursued in CEECs by those MNCs, using data on the products they export. The fact of lower wages gives them good reasons for not transferring their most advanced products and processes to CEECs and the transfer of less advanced activities in turn helps keep wage levels below those of western Europe. The implication is that CEECs may not catch up with western Europe without a change in their growth model.

Suggested Citation

  • Myant, Martin, 2018. "The Limits to Dependent Growth in East-Central Europe [Les limites d’une croissance économique dépendante en Europe centrale et orientale]," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 24.
    • Handle: RePEc:rvr:journl:2018:13351
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    Citations

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    Cited by:

    1. Ana Podvršič & Joachim Becker, 2019. "Eurozone periphery post-crisis," CEPN Working Papers hal-02358339, HAL.
    2. Ana Podvršič & Joachim Becker, 2019. "Eurozone periphery post-crisis," Working Papers hal-02358339, HAL.
    3. Lechowski, Grzegorz, 2019. "Beyond "dependent development" in a high-tech industry? The interplay between domestic institutions and transnational sectoral governance in the trajectories of emerging Polish IT firms [," Discussion Papers, Research Group Globalization, Work, and Production SP III 2018-302r, WZB Berlin Social Science Center, revised 2019.
    4. Ana Podvršič & Joachim Becker, 2019. "Eurozone periphery post-crisis - Financialisation and industrialisation in Slovenia and Slovakia," CEPN Working Papers 2019-10, Centre d'Economie de l'Université de Paris Nord.

    More about this item

    Keywords

    capitalism; Eastern Europe; economic performance; dependency;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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