Market Economies of the Western Balkans Compared to the Central and Eastern European Model of Capitalism

Using the Central and Eastern European model of capitalism, this paper compares the market economies of the Western Balkan countries to the postsocialist European Union member states. It analyzes the main institutional areas of a socio-economic system such as product markets, innovation system, financial system, labor market and industrial relations, social protection and the educational system. The comparison of institutional systems does not provide an unambiguous answer to the question of whether the Western Balkan market economies fit into the model. There are many similarities between the institutional arrangements of the two regions, and the differences seem to be a consequence of delayed reforms rather than of an alternative model. However, the question Beáta Farkas The Institute of Finance and International Economic Relations, University of Szeged, Hungary [email protected] CroEconSur Vol. 19 No. 1 June 2017 pp. 5-36 Received: April 19, 2016 Accepted: March 2, 2017 Research Article doi:10.15179/ces.19.1.1