The Origins of Varieties of Capitalism: Lessons from Post-Socialist Transition in Estonia and Slovenia

Abstract

Abstract This chapter studies the origins of varieties of capitalism in post-socialist Central and Eastern Europe. It develops a theory of network-promotion and network-disruption to explain the emergence of LME and CME institutions. This theory is examined in the context of two countries in the region, Estonia and Slovenia, which are shown to be very good examples of liberal and coordinated market economies. This chapter focuses on industrial relations and wage bargaining in these two countries. It shows how inherited economic institutions and strategic policy choices in early transition have shaped networks and emerging varieties of capitalism.

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