Europe Divided? Can Warsaw Become the Regional Leader of the Central and Eastern European Region?


  • Zoltan Gal Hungarian Academy of Sciences
  • Andrea Schmidt University of Pecs



geoecenomics, financial centre, transformation


Europe Divided? Can Warsaw Become the Regional Leader of the Central and Eastern European Region?

This paper investigates the long-term problems of capital accumulation in the context of centre and periphery and dependency models, the systemic and geo-economic features of the integration of post-socialist transition countries in the context of dependent market economy (DME) model characterized by high dependency on foreign direct investment channelled by foreign MNCs into the CEE and the restructuring of the centres in Central and Eastern Europe. It argues that the global economic crisis has been exposed the systemic vulnerability of the post-socialist neo-liberal transition model characterized by foreign investment-led growth which is failed to generate domestic capital accumulation and decrease the relative development gap between the ‘old’ and ‘new’ EU members. We would like to use the principles of geoeconomics in order to analyse the Central and Eastern European region and the role of the Foregin Direct Investment and its special role in financial sector in transformation and the question of the problem of Central and Eastern European financial centres focusing on the position of Warsaw.


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Author Biographies

Zoltan Gal, Hungarian Academy of Sciences

Is a full Professor in Regional Economics at Kaposvar University, Hungary, senior researcher at the Centre for Economic and Regional Research of the Hungarian Academy of Sciences and President of the Hungarian Regional Science Association. His research fields include regional economics, regional finance, international finance, financial and economic geography, and regional innovation in transition countries as well as an EU and global context. He has been a visiting scholar at a number of prestigious universities including the University of Oxford, UK and Trinity College Dublin, Ireland. He holds a dual MA from the Central European University, Budapest, Hungary, and New York State University, Albany, USA, and a PhD in Financial Geography. He is a member of the editorial boards of the Journal of Innovation & Entrepreneurship, Review of Economic Perspectives, Journal of Economic Development, Environment and People, and Space & Society.

Andrea Schmidt, University of Pecs

Is an Asssociate Professor at University of Pecs, Department of Political Science and International Studies and former Visiting Lecturer of the Josai Institute for Central European Studies Josai International University, Tokyo, Japan, Jagiellonian University, Poland, Warsaw University, Poland, and Visiting Lecturer at Ivan Franko National University in L’viv. She holds dual MA from the Central European University, Budapest and the New York State University, Albany, the MSc degree from Budapest Business School and a PhD on Political Science from the University of Pecs. She specializes on International Political Economy and Comparative Political Studies of the Central and Eastern European region. She is author of several articles and book chapters related to Central and Eastern European and post-Soviet region.


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How to Cite

Gal, Zoltan, and Andrea Schmidt. 2017. “Europe Divided? Can Warsaw Become the Regional Leader of the Central and Eastern European Region?”. Politeja 14 (6(51):235-60.

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