The impact of the economic transition on domestic output in

The recent process of the transition to market systems in the Central and Eastern European economies has had profound effects on both trade and domestic output. Two of the by-products of the transition - the fall in the volume of intra-COMECON trade and the deliberate tightening of the fiscal stance...

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Bibliographic Details
Published in:European business review 1994-05, Vol.94 (3), p.9
Main Authors: Emadi-Coffin, Barbara, Emadi-Moghadam, Mehrdad
Format: Article
Language:English
Subjects:
Current accounts
Earnings
Economic growth
Economic reform
Effects
Exports
Fiscal policy
GDP
Gross Domestic Product
Industrial production
International trade
Macroeconomics
Manufacturing
Market economies
Output
Structural adjustment
Transitions
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Summary:The recent process of the transition to market systems in the Central and Eastern European economies has had profound effects on both trade and domestic output. Two of the by-products of the transition - the fall in the volume of intra-COMECON trade and the deliberate tightening of the fiscal stance in the economies of these countries - have contributed significantly to a fall in the level of manufacturing output, particularly in the case of the former Czechoslovakia. An examination was conducted of the implications of the behavior of the trade account and of government fiscal policy for the domestic manufacturing sector in the former Czechoslovakia between 1990 and 1992. Industrial restructuring was extreme, leading to increased reliance on imports. However, the contraction in the manufacturing sector may have kept wages pressures and inflation low, as well as attracting foreign investment, leading to a relatively successful transition for the Czech Republic.
ISSN:0955-534X
1758-7107