The economic environment in Albania, Bulgaria, Macedonia FYR, and Greece - A cross-country study

This article reviews the economic environment of selected Balkan economies. As a longstanding member of the European Union (EU), Greece leads the neighboring economies in terms of GDP per capita and as a destination for foreign direct investment (FDI). Comparisons of nominal and purchasing powerparity GDP highlight the large spread between the price levels in the Balkan economies in transition and the EU. Despite a number of obstacles, the Balkan transition economies have managed to stabilize price growth and to lay the foundations for future economic growth. The role of the both as a source of material support for the region and as a source of policy advice and direction is critically evaluated with respect to stabilization and macroeconomic policy. The article also reviews the slow emergence of economic institutions and the negative effects of corruption on the region's prospects for growth and for attracting FDI.