The Economics of Central and East Europe

- Diese Veranstaltung wird ab WS 2013/14 durch PD Dr. Johannes Stephan gelesen. Die Materialien zu dieser Veranstaltung werden zu gegebener Zeit aktualisiert -

Material for the lectures and seminars

Qualifikationsziele / Kompetenzen

The module aims to provide an example of particular business environment in post-socialist economies which incorporates  important overlaps with the business environment of other (post-)transition emerging economies. Such catching up economies offer a whole variety of opportunities and challenges for international business. The economies of Central Eastern Europe are characteristic of being very open economies in terms of their intense integration into the international and in particular European division of labour. They additionally have a large share of economic activity performed by foreign direct investment both in the manufacturing and service sector and still undergo profound institutional changes. The lectures in this module are concerned with first providing important information on their performance since systemic change and their most recent past. This supplies the students with the necessary background of the institutional set-up and weaknesses particular in emerging markets. Second, the lectures aim to discuss the opportunities and challenges in these specific economies which are developing dynamically and which adjust their business environment ot the needs of international integration.


  1. The main characteristics of the socialist and market economies and the legacies of socialist economies
  2. The main elements of systemic change
    2.1 The economics of liberalisation and macroeconomic stabilisation
    2.2 Investment, FDI, and privatisation
    2.3 Institution-building
    2.4 The role of the state and economic policy in emerging markets
  3. Comparative performances in systemic transition and economic catch-up development
  4. Doing business in emerging markets on the example of Central Eastern Europe
    4.1 Foreign investors and absorptive capacity of local suppliers
    4.2 Investing in labour intensive or capital intensive production?
    4.3 R&D and innovation capacities of emerging markets
    4.4 Institutional weaknesses in emerging markets
    4.5 Opportunities and challenges of international and European integration


1 semester (3 SWS Lectures / 1 SWS practical exercises and assignments)

Voraussetzung für die Vergabe von Leistungspunkten

The students are evaluated at the end of the respective semester in the form of a written test (120 minutes, 80%). In each of the courses within the module a presentation has to be done. (20%)


6 points - The overall mark for the module is computed as the arithmetic average of the marks for the two courses within the cluster.


  • Aslund, A. (2002) Building Capitalism. Cambridge: Cambridge University Press
  • Berglöf, E., Roland, G. (2007), The Economics of Transition,Houndmills
  • European Bank for Reconstruction and Development, Transition Reports, London: EBRD
  • Gros, D. and A. Steinherr, A. (2004) Economic Transition in Central and Eastern Europe. Cambridge: Cambridge University Press
  • Klaus, V. (1993) The Ten Commandments of Systemic Reform, in Occasional Papers of the ‘Group of Thirty’, No. 43, Washington, DC.: Group of Thirty
  • Lavigne, M. (1999) The Economics of Transition. From Socialist Economy to Market. Basingstoke/ London: Macmillan
  • Plus articles from contemporary issues of Economic Systems, Journal of Comparative Economics, Comparative Economic Studies, Eastern European Studies, Post-Communist Economies