Work detail

Path dependency principle in the context of the transformation of Czechoslovak centrally planned economy

Author: Bc. Aleš Bělohradský
Year: 2012 - summer
Leaders: prof. Ing. Lubomír Mlčoch CSc.
Consultants:
Work type: Bachelors
Language: Czech
Pages: 42
Awards and prizes:
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Abstract: This work is focused on the economic phenomenon called path dependency, which basically describes
how the current economic performance is influenced by the historical evolution. The objective of the
work is to examine this principle in changes of property rights in the specific circumstances of the
economic and political transition from the centrally planned economy of the communist Czechoslovakia
to the capitalist system in the 1990s. The explanation of the principle and its foundation in the theory of
the institutional economics, and especially the evolutionary theory of institutions, takes place in the first
part. The second part brings the description of the real socialism with the emphasis on its forms of the
ownership and the quasi-ownership respectively. To give more specific illustration of the socialist
system, the agricultural sector is chosen to be described more precisely. Hence the stress is put on the
description of the cooperatives as the major form of a socialist agricultural enterprise. With this
theoretical background and with the empirical findings from two former agricultural cooperatives, the
main effects of path dependency are delineated in the third part. Finally, the generalization and
evaluation of significance of the principle for the economic analysis conclude the study.

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