The Choice of Reforms and Economic System in the Baltic States

Karsten Staehr ()

Comparative Economic Studies, 2017, vol. 59, issue 4, No 4, 498-519

Abstract: Abstract This paper discusses the reforms that introduced market-based economies in the three Baltic states and seeks to identify particularities defining the resulting economic system. The reforms were rapid and broadly based and involved particular measures such as currency boards, free international trade, flat taxes and funded pension systems. The result was liberal-market economic systems with more emphasis on private enterprise, high-powered incentives and small governments than in most other post-communist countries. The unique choice of reforms may be seen as paradoxical given the proximity of the Baltic states to the Nordic welfare states. The choice may partly be explained by the initial economic and structural conditions of the countries, but the democratic and political dynamics as well as the preferences and values of the public are arguably of greater importance.

Keywords: transition; economic reforms; institutions; comparative economic systems; political economy (search for similar items in EconPapers)
JEL-codes: P17 P21 P36 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/s41294-017-0037-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:59:y:2017:i:4:d:10.1057_s41294-017-0037-1

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

DOI: 10.1057/s41294-017-0037-1

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().