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The Visegrád Countries: Could They Be the Pioneers of the Change of the Central and Eastern Model of Capitalism?

Beata Farkas

The economic convergence of the Central and Eastern European EU member states has slowed downed since the 2008 global crisis. The institutional analysis of the region projected that the convergence potential of CEE capitalism would be limited. This paper shows that characteristic features of the model have not changed since the crisis. In Central and Eastern Europe the stable Visegrád countries (Czech Republic, Poland and Slovakia) suffered the smallest losses during the crisis. It is due not to institutional changes but to the advantageous composition of FDI, their proximity to Germany and their previous disciplined economic policy. However it is a good initial position to change their economic institutional settings to be able to upgrade their position in the global value chain. The paper summarizes the complexity of required changes to advance from the semi-periphery towards the centre. The puzzle of slow growth in the Czech Republic indicates the real danger that the current situation will persist in the long run.

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