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Foreign Direct Investment and Privatization

  • Chapter
The Economics of Transformation

Abstract

After decades of socialism, in which huge state-owned firms produced in accordance with central planning, the countries of central and eastern Europe aim to reestablish a market economy. Systemic transition creates a host of supply-side problems since a long history of central planning and near-autarchy within the Council for Mutual Economic Assistance (CMEA) have to be overcome. The countries of the ex-CMEA area have to open up towards the world economy (which renders a considerable part of the capital stock obsolete), microeconomic adjustments at the level of individual firms have to be achieved, whole industries have to be restructured and the long-neglected service sector has to be expanded.

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Authors
  1. Paul J. J. Welfens
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Editor information

Editors and Affiliations

  1. Department of Economics, Harvard University, 02138, Cambridge, Massachusetts, USA

    Alfred Schipke (Visiting Fellow) (Visiting Fellow)

  2. International Monetary Fund, 20431, Washington, D.C., USA

    Alfred Schipke (Visiting Fellow) (Visiting Fellow)

  3. Harvard Academy for International and Area Studies, Harvard University, 02138, Cambridge, Massachusetts, USA

    Alan M. Taylor (Academy Scholar) (Academy Scholar)

  4. Department of Economics, Northwestern University, 60208-2600, Evanston, Illinois, USA

    Alan M. Taylor (Academy Scholar) (Academy Scholar)

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© 1994 Springer-Verlag Berlin · Heidelberg

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Welfens, P.J.J. (1994). Foreign Direct Investment and Privatization. In: Schipke, A., Taylor, A.M. (eds) The Economics of Transformation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-78615-0_6

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  • DOI: https://doi.org/10.1007/978-3-642-78615-0_6

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-78617-4

  • Online ISBN: 978-3-642-78615-0

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