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Condemned to be left behind? Can Central and Eastern Europe emerge from its low-wage model?

Béla Galgóczi (ETUI) and Jan Drahokoupil (ETUI)

Date de publication : 2017

Nombre de pages : 210

Edité par :

Béla Galgóczi (ETUI) and Jan Drahokoupil (ETUI)

This book focuses on the economic factors which have impacted on the low-wage economies of Central and Eastern Europe (CEE), over the past twenty years. In this period CEE economies were mostly driven  by low-wage  based foreign direct investment (FDI).  Earlier publications made the case that the potential of this growth engine has been exhausted and that there is room for dynamic wage increases given the accumulated productivity reserve due to past wage moderation.

Searching for ways of how to break out of the low-wage trap, this publication, considers the policies which are needed to support a sustainable convergence process with their western European counterparts.

Chapters in this book examine different aspects of the CEE growth model, taking into consideration the changing role of FDI, the consequences of efforts to upgrade production capacity in both the foreign investment and domestic sectors.

Authors also explore the role of innovation, R&D and the use of EU Cohesion Funds as instruments to boost growth in the region. The importance of developing human resources and preparing CEE economies for the digital age, are key features of this publication.

ETUI, Brussels, ISBN 978-2-87452-461-5, ISBN 978-2-87452-462-2 (pdf)

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