Economic Transition in Central Europe and the CIS Countries by Tomasz Marek Mickiewicz PDF

By Tomasz Marek Mickiewicz

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Extra info for Economic Transition in Central Europe and the CIS Countries (Studies in Economic Transition)

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In the late 1980s, the negative effects were amplified by two additional factors. First, reckless extraction policies led to depletion of some of the most easily available oil pools and ore deposits (Gros and Steinherr 2004). In particular, production of crude oil in Russia levelled out, oscillating around 10,000 barrels a day (Gregory and Stuart 1995). 1 in 1986 (constant 1980 $US) and remaining at a low level until the end of the decade, which turned out to be the last in the history of the CPEs (Tolba and El-Kholy 1992).

In the case of the command economy there was uniform ownership of enterprises, which had no separate equity. If the budget is ‘soft’, firms with negative NPV may survive, and growth opportunities are no longer correlated with the value of the firm. From the general equilibrium perspective, this situation implies the transfer of resources from value enhancing producers to those which may generate little valueadded or may even be value-destroying. The firm shares the risk with the government; the additional profits may be skimmed off, but losses may also be shifted onto somebody else.

In addition, China and Vietnam offer two important examples of economic systems which can be functionally described as a unique evolving mixture of a command economy and a market economy. 5. ‘Why is there an objective price structure in a competitive market? e. equalises demand and supply of each commodity. The same objective price structure can be obtained in The Old Regime and the Opening Balance of Transition 25 a socialist economy if the parametric function of prices is retained. On a competitive market the parametric function of prices results from the number of competing individuals being too large to enable any one to influence prices [on] his own.

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