Varieties of Capitalism and Socio-Economic Models in Transition Economies

Abstract

In this chapter, after having briefly outlined the formal change that occurred in transition economies, mainly through EBRD indices, I will classify them according to their socio-economic models and I will test whether the type of system has an impact on the development path of the country, considering both economic growth and some socio-economic indicators. Following the varieties of capitalism literature (Jessop, 2002; Amable, 2003; Amoroso, 2003; Brenner, 2005; Coates, 2005), countries will be classified according to their main macroeconomic characteristics and institutional variables drawn from the EBRD, such as enterprise and privatisation, market and competition, trade and openness, financial system, wage nexus and social investments. Following this classification, I found five types of socio-economic models among FCEs: the competitive capitalist model, the corporative model, the dirigiste model, the hybrid model and the state capitalist model.