Economic Transition Mathematics & Economics Essay Paper (Essay Sample)

Economic Transition
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Economic Transition
Economic transition refers to the situation where an economy changes from a centralized system of economic planning to a market-based system. During the transitional process, the economy undergoes a series of transformations in its structural organization, which is aimed to achieve a market-based form of governance CITATION Mar93 \l 1033 (Weitzman, 1993). Such transformations include economic liberalization during which market forces have the role of setting prices instead of the centralized planning organization. Additionally, the transition helps to reduce trade barriers, privatize parastatals and state-owned resources, as well as restructuring collectively and state-run businesses CITATION Eco19 \l 1033 (Economics Online, 2019). The process is characterized by creation and changing of private enterprises and state-owned companies to promote private-owned businesses and create different governmental institutions.
Obstacles that Countries Face During Economic Transition