Post-Crisis Growth and Development Slowdown of Central Eastern European Countries from the Middle-Income Trap Perspective

Main Article Content

Krisztina Soreg

Abstract

There seems to be no compelling reason to argue that the financial crisis of 2007-08 has significantly contributed to the deepening of centre-periphery based development issues in the European Union. It has become evident that globally, the economic and political role of the EU is in a significant decline. The world’s most opened economic integration was facing a severe market crisis including a so-called double-dip recession period between 2008-2009 and also 2011-2013 with slight regional differences. The development and economic growth of transition economies within the European Union are definitely representing a special case. During the recent crisis, the above-mentioned countries have been dealing with several socio-economic difficulties raising significant financing needs towards the IMF. It can be assumed that the long-standing structural problems of the post-Soviet countries combined with the latest protracted recession have created a middle-income trap related situation in the examined region. In this paper, the discussion centres on the case study of Hungary, a country which has come a long way to be integrated into the EU, however, from the mid-2000s no converging tendency can be observed towards the old Member States.

Downloads

Download data is not yet available.

Article Details

How to Cite
Soreg, K. (2018). Post-Crisis Growth and Development Slowdown of Central Eastern European Countries from the Middle-Income Trap Perspective. World Journal of Applied Economics, 4(1), 1-20. https://doi.org/10.22440/wjae.4.1.1
Section
Research Articles

References

Attila, M. (2013). Europai gazdasagi es politikai foderalizmus (european economic and political federalism). Dialog Campus.

Benes, V., & Braun, M. (2014). An Ever-closer Eurozone and Its Consequences for Differentiated Integration in Europe. In S. Blockmans (Ed.), Differentiated Integration in the EU. From the Inside Looking Out. Centre for European Policy Studies (CEPS). http://aei.pitt.edu/47672/1/Differentiated Integration in the EU.pdf.

Bienkowski, W. (2016). Post Communist Countries of Central Eastern Europe Facing Middle Income Trap Problem: Preliminary Findings Based on Statistical Data and Some Factor Analyses for 1990-2014. Mysl Ekonomiczna i Polityczna(2 (53)), 66-96.

Bureau of Economic Analysis. (2017). U.S. Economic Accounts. https://www.bea.gov/.

Cywinski, L., Harasym, R., Pater, R., & Tarchalski, K. (2016). Intangible Capital, Level of Economic Growth, and "Middle Income Trap". Studia Ekonomiczne/Polska Akademia Nauk. Instytut Nauk Ekonomicznych(3 (90)), 439-461.

EBRD. (2017). Transition Report 2017-18 (European Bank of Reconstruction and Development). http://2017.tr-ebrd.com/downloads/.

EUROSTAT. (2017). Statistical Database. http://ec.europa.eu/eurostat/data/database.

Fraser Institute. (2017). Economic Freedom. https://www.fraserinstitute.org/economic-freedom/map?geozone=world&page=map&year=2015.

Garrett, G. (2004). Globalization's Missing Middle. Foreign Affairs.

Gal, Z., & Schmidt, A. (2016). Geoeconomics in Central and Eastern Europe: Implications of FDI. In J. M. Munoz (Ed.), Advances in Geoeconomics. Routledge.

Golonka, M., Gyrgy, L., Krulis, K., Pokrywka, ., & Vano, V. (2015). Middle-Income Trap in V4 Countries? { Opening theses (The Kosciuszko Institute).

Groningen Growth and Development Center. (2013). The Maddison-Project. http://www.ggdc.net/maddison/maddison-project/data.htm.

Huttl, A., Suranyi, B., & Vita, L. (1998). A Gazdasagi Novekedes es Fejlettseg Paradoxona a Kelet-kozep-europai Atmenetben [The Paradox of Economic Growth and Development Level in the East-Central-European Transition]. Kozgazdasagi Szemle (Economic Review-monthly of the Hungarian Academy of Sciences), 45 (11), 973-988.

Janossy, F. (1969). Gazdasagunk mai ellentmondasainak eredete es felszamolasuk utja [Root Causes of Current Contradictions in Our Economy and Their Treatment]. Kozgazdasagi Szemle (Economic Bulletin), 16 (7-8), 7-8.

Kornai, J. (2005). Kozep-Kelet-Europa Nagy Atalakulasa-siker es Csalodas [The Great Transformation of Central and Eastern Europe-success and Disappointment]. Kozgazdasagi Szemle (Economic Review-monthly of the Hungarian Academy of Sciences), 52 (12), 907-936.

Kozponti Statisztikai Hivatal (KSH) (Central Statistical Office). (2007). A Gazdasagi Fejlettseg Alakulasa a Kelet-kozep-europai Regiokban [Development of Economic Development in the Central and Eastern European Regions]. Statisztikai Tukor (Statistical Support), 1 (54), 1-5. https://www.ksh.hu/docs/hun/xftp/stattukor/gazdfejlkke.pdf.

Kozponti Statisztikai Hivatal (KSH) (Central Statistical Oce). (2010). Magyarorszag 1989{2009: A Valtozasok Tukreben [Hungary 1989-2009: In the Light of the Changes] (Tech. Rep.). https://www.ksh.hu/docs/hun/xftp/idoszaki/mo/mo19892009.pdf.

Kozponti Statisztikai Hivatal (KSH) (Central Statistical Oce). (2017). Magyarorszag 2016 [Hungary 2016] (Tech. Rep.). http://www.ksh.hu/docs/hun/xftp/idoszaki/mo/mo2016.pdf.

Labaye, E., Sjatil, P. S., Bogdan, W., Novak, J., Mischke, J., Fruk, M., & Ionut, O. (2013). A New Dawn: Reigniting Growth in Central and Eastern Europe. https://www.mckinsey.com/~/media/McKinsey/Global%20Themes/Europe/A%20new%20dawn%20Reigniting%20growth%20in%20Central%20and%20Eastern%20Europe/MGI CEE A new dawn Full report Dec 2013.ashx. McKinsey Global Institute.

Majone, G. (2012). Rethinking European Integration after the Debt Crisis (The European Institute, London's Global University Working Papers, No. 3).

Martin, A., & Ventura, J. (2010). Economic Growth with Bubbles (National Bureau of Economic Research Working Papers No. 15870). DOI:10.3386/w15870.

Narodowy Bank Polski (Central Bank of Poland). (2017). Balance of Payments Statistics. http://www.nbp.pl/homen.aspx?f=/en/statystyka/Balance of payments.html.

National Bank of Hungary. (2017). Balance of Payments, Foreign Direct Investment, International Investment Position. https://www.mnb.hu/en/statistics/statistical-data-and-information/statistical-time-series/viii-balance-of-payments-foreign-direct-investment-international-investment-position.

Podkaminer, L. (2013). Development Patterns of Central and East European Countries (in the Course of Transition and Following EU Accession) (The Vienna Institute for International Economic Studies, Research Reports, No. 388). https://wiiw.ac.at/development-patterns-of-central-and-east-european-countries-in-the-course-of-transition-and-following-eu-accession--dlp-2985.pdf.

Rapacki, R., & Prochniak, M. (2009). The EU Enlargement and Economic Growth in the CEE New Member Countries) (European Economy Economic Papers No. 367). DOI: 10.2765/23063.

World Bank. (2017). World Development Indicators. https://data.worldbank.org/data-catalog/world-development-indicators.