J. Stephan Book order

The book explores the critical role of foreign direct investment (FDI) in Central East Europe's transition, highlighting how foreign investors contributed to market restructuring. It delves into the provision of capital and expertise necessary for revitalizing technologically outdated and financially struggling firms, illustrating the transformative impact of FDI on the region's economic landscape.

The book analyzes the success factors of economic transition by contrasting East Germany's rapid shock therapy with Hungary's gradual approach. It identifies essential conditions for economic development that advocate for some state intervention and strategic planning. Key themes include the importance of a stability-oriented incomes policy and a managed integration strategy to achieve sustainable export surpluses and macroeconomic stability, while also addressing the risks associated with premature integration.