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Warsaw Pact Countries

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Analysis of Factors in the Economic Performance in the Post-Cold War Era of Former Warsaw Pact Countries and China Kyle Murphy
Senior Research Proposal
INTA 4740: Dr. Murat Bayar
Fall 2012

Introduction
Why the differences in economic performance of former Warsaw Pact countries and china since 1990? This question is quite puzzling because the factors that are responsible for this divergence in economic performance are obscured amongst ever-changing political and economic landscapes. Before delving into too deeply into the answer to this question, it is best to establish the fundamental pieces that serve as the basis for this question.

The countries that are involved in this puzzle are Russia, Bulgaria, The Czech Republic, Slovakia (Czechoslovakia), Hungary, Poland, Romania, Albania, and China. Each of these countries share a common beginning after the fall of the Soviet Union in 1990 for the birth of economic independence from the former Soviet Union, minus China. Additionally, each country adopts its own policies, customs, and ways of conducting its own political and economic affairs and the unique ways of executing these affairs. This work looks into the degree of corruption, membership to regional trade agreements and/or the world trade organization, population growth rate, literacy rate, and the level of democracy as key factors that influence the implementation of a democratic government and the process of trade liberalization. Whereas, trade liberalization is defined as a system of trade policy that allows traders to act and or transact with minor interference from government. This inherently suggests the law of comparative advantage that the policy permits trading partners to have mutual gains from trade of goods and services. This trade liberalization, more specifically the economic performance of the countries listed above, is analyzed through the Gross Domestic Product per capita in each country in terms of the variables listed above....