“Social Trilemma”: Empirical Evidence from Central and Eastern Europe

George Marian Ștefan, Vlad Nerău, Daniela Livia Traşcă, Daniela Nicoleta Sahlian and Liviu Matac
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George Marian Ștefan: Department of Economics and Economic Policies, Bucharest University of Economic Studies, 010374 București, Romania
Vlad Nerău: Department of Economics and Economic Policies, Bucharest University of Economic Studies, 010374 București, Romania
Daniela Livia Traşcă: Department of Economics and Economic Policies, Bucharest University of Economic Studies, 010374 București, Romania
Daniela Nicoleta Sahlian: Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 București, Romania
Liviu Matac: Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 București, Romania

Sustainability, 2019, vol. 11, issue 17, 1-15

Abstract: This paper’s aim is to analyze the challenges that may arise to the harmonious and inclusive economic development of EU member states from Central and Eastern Europe in the larger context of the European Common Market and the free movement of capital. The theoretical framework on which this paper is based is represented by the thesis of “structural dependence on international capital” and “race to the bottom” competition to attract foreign investment and increase the convergence speed in the catching-up process. We have also tackled the consequences arising from the social cohesion perspective, pointing out that a country cannot have at the same time (1) a high degree of social equity; (2) free movement of capital, amid structural consequences that manifest themselves as a result of this freedom; and, (3) a robust position of foreign companies as a share of value added.

Keywords: economic development; structural dependence; foreign investment; social trilemma; social protection (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:17:p:4638-:d:261052

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