Throughout Central and Eastern Europe (CEE), there is a widespread failure of enterprise debtors to make scheduled payments of principal and interest to creditors, who in turn have strong incentives not to declare bankruptcy. In such circumstances, the price mechanism does not properly guide the...

We present a simple computable model of EC footwear production and trade coupled with a rudimentary production model for Eastern Europe. We simulate the liberalization of EC footwear imports from Eastern Europe as planned under the so-called Europe Agreements. We find that if Eastern Europe can...

This paper uses a schematic computable model of the iron and steel sectors in the European Community (EC) and Eastern Europe to explore the effects of trade policies on those sectors. In particular it explores the partial opening of EC markets to Eastern producers. Following a discussion of...

This paper applies the methodology and the empirical results derived from the `endogenous growth literature' to the East European countries. From that baseline, we analyse the solvency of Eastern Europe by calculating a `growth-adjusted-debt-per-effective-capita' measure of the burden of debt in...

Trade liberalization in Czechoslovakia, Hungary and Poland was accomplished in record time between 1989 and 1991. Sustainability became, however, a major concern in Central and Eastern Europe as the `honeymoon of trade liberalization' ended in 1991/2. The paper examines whether Europe Agreements...