Abstract
Since planned economies were relatively autarkic, none of them traded extensively with the capitalist outside world. During the transition, as trade relationships widened internationally, these economies also went through a process of creating new institutions and organizations that required new skills and attitudes more relevant to the global trading world. The relationship between citizens and the state also changed substantially. This chapter discusses the importance and the role played by institutions in a changing economic environment. It also analyzes how institutional change affected the business participants in the new capitalist environment.
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Appendix
Derived from World Bank websites: https://knowledgepolicy.wordpress.com/2012/06/22/world-bank-knowledge-economy-index-kei-2012-rankings/ and https://knoema.com/WBKEI2013/knowledge-economy-index-world-bank-2012 and http://web.worldbank.org/WBSITE/EXTERNAL/WBI/WBIPROGRAMS/KFDLP/EXTUNIKAM/0,,menuPK:1414738~pagePK:64168427~piPK:64168435~theSitePK:1414721,00.html
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Voicu, A.M., Sen, S., Martinez-Zarzoso, I. (2018). Foreign Direct Investment. In: Trade, Development and Structural Change. Studies in Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-59005-6_5
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DOI: https://doi.org/10.1057/978-1-349-59005-6_5
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