The International Tourism Market in Eastern Europe

Estimates presented of the size of the international tourism markets of the European CMEA countries, the USSR and Yugoslavia show that only Yugoslavia is an established centre for tourist development. Data on tourist arrivals and tourist receipts are presented. International tourist receipts account for approximately two per cent of National Product in Yugoslavia and Hungary and are much smaller in the other economies as far as can be ascertained. The major constraints on further tourist developments in CMEA countries are political and economic planning constraints, the cost of development of tourist amenities and the low priority assigned to tourism. Short-term increases can be brought about by improved marketing and promotion of the considerable attractions of Eastern European countries as tourist destinations.     

Strategic partnering in Eastern Europe

There are alternatives to the much-touted “joint venture” in Eastern Europe. Some of these, such as licensing and cooperation agreements, have actually been available for some time. Others, like wholly owned subsidiaries, mergers, and acquisitions, are in the early stages of development. Clearly, the pace of reform indicates it is time to rethink the conventional wisdom on corporate development in Eastern Europe.     

Eastern Europe: The new enterpreneurial frontier

American entrepreneurs must dive into the Eastern European market-place now, not wait until the economies there stabilize. The recipe for success in Eastern Europe: an ongoing presence in the major markets that adds to the understanding of the economic cultures of these new democracies and some prudent assistance from Uncle Sam.     

Promoting entrepreneurship in Eastern Europe

The past decade has seen a revival of entrepreneurship in the modern industrial economies, characterized by a wave of enterprise restructuring and of new developments in business and technology. In this paper, we argue that market transitions of the post-socialist economies of Eastern Europe cannot be successful without similar entrepreneurial restructuring. To address the massive structural distortions that still plague the post-reform economies, the governments of the region must promote entrepreneurship through policies that: (1) make use of all possible sources of entrepreneurship, including in particular the former state and social sectors; and (2) establish a macroeconomic environment and property-rights framework conducive to entrepreneurship. A successful promotion strategy will need to operate on several fronts, by: (1) redirecting entrepreneurial activities into legal, productive activities, (2) increasing the supply and effectiveness of entrepreneurs, (3) developing markets for complementary inputs, and (4) increasing the demand for entrepreneurship. An unsuccessful approach, we argue, will be one that regards the pre-reform small private sector as the only source of entrepreneurship, and as the only arena for its productive use.Chair of the President's Council of Economic Advisers Professor of Economics and Business Administration University of California at Berkeley (on leave)Visiting Professor University of California at Berkeley Professor of Economics and Entrepreneurship Faculty of Economics, University of Ljubljana (on leave) Advisor to the Government of Slovenia on real sector restructuring, 1992–93     

The IMF and the countries of Eastern Europe

The countries of Eastern Europe need to raise considerable finance not only in order to improve their balances of payments but also to adjust the structure of their economies over the long term to changed internal and external conditions. The adjustment measures require capital, but the Eastern European countries have only limited scope to broaden their own capital base. What actual or potential significance does the international Monetary Fund have for overcoming the difficulties of the CMEA countries in question?     

Window on Eastern Europe

Commercial cooperation between transBaltic neighbours Denmark and Poland is thriving, yet relationships between business people in the two countries are not always easy as a consequence of differing cultural histories and misunderstandings. The author is Associate Professor in the Department of Intercultural Communication and Management in Copenhagen Business School, Dalgas Have 15, DK-2000 Frederiksberg, Denmark.     

Eastern and Central Europe

ABSTRACT

The aim of this research is to help explain the impact of cultural variables on privatization and market entry strategies in several of the transition economies of Central Europe. The geographic area focus is on the former East Germany, Hungary, Poland, and the Czech Republic. The cultural legacy of communism involves the need to fundamentally change core values. Democratic capitalism requires a cultural re-orientation. The authors seek to examine the implications of cultural impediments and opportunities and to show how successful strategic management seeks to function in a dramatic value transition. Finally, the analysis underlines how each country as well as individual management teams have made progress under the new circumstances.     

The Achievement of Privatization Objectives in Central and Eastern Europe

Summary

Privatization is an essential part of the transition process in Central and Eastern Europe. In this process the major stakeholders have a variety of different objectives. The conventional Western literature views of the objectives of governments, investors, and privatized companies are identified. The research then studies the importance ol'thcsc in Central and Eastern Europe and the degree to which they have been achieved in Hungary, Poland, and Slovcnia for former state-owned enterprises (SOEs) which are now fully or partly private and for organic private firms. The paper concludes that the major objectives are more likely to be achieved by fully privatized former SOEs.     

Location choices of multinational firms in Europe: The role of EU cohesion policy

Using data on 5509 foreign subsidiaries established in 50 regions of 8 EU countries over the period 1991-1999, we estimate a mixed logit model of the location choice of multinational firms in Europe. In particular, we focus on the role of EU Cohesion Policy in attracting foreign investors from both within and outside Europe. We find that, after controlling for the role of agglomeration economies as well as a number of other regional and country characteristics and allowing for a very flexible correlation pattern among choices, Structural and Cohesion funds allocated by the EU to laggard regions have indeed contributed to attracting multinationals. These policies as well as other determinants play a different role in the case of European investors as opposed to non-European ones.