How to enhance efficiency of transition economies through structural changes: case of Lithuania (structural changes in transition economies)

Abstract

Economic performance of particular country, especially country in transition, heavily depends on efficiency of reallocation resources and structural changes of production and employment. This paper deals with analysis of factors, which condition structural changes in transition economies and simulate the path of adjustment to market-based economic systems. At first, various development patterns, which reflect reallocation of resources across industry, services and agriculture as country develops towards market-economy system, are to be analyzed. Data, reflecting Lithuanian restructuring trends are to be presented and economically interpreted. Special attention to role of productivity of various sectors of economy, geographical reallocation and structure of trade and role of foreign direct investments will be paid. Finally, further structural changes and appropriate economic policies will be discussed, with particular attention to the implications for EU accession.