New Dependent Market Economies in East Central Europe Transforming Global Trade
The article introduces a new type of economy called the dependent market economy (DME) found in Central Europe. DMEs rely heavily on foreign capital and have been successful in producing complex consumer goods. Countries like the Czech Republic, Hungary, Poland, and the Slovak Republic have adopted this model since the fall of state socialism. The key elements of the DME model include skilled yet affordable labor, technology transfer within multinational companies, and foreign direct investment for capital.