Slovenian Economy in Transition and Behavior of Firms and Financial Institutions

Slovene economy is in a process of transition.After the first phase of the ownership reform and relatively successful stabilization of the economy, which still operates under soft budget constraints, it is necessary to further develop the monetary and financial systems, input markets and ownership structures corresponding developed market economies. We expect the government measures for establishing appropriate market conditions to proceed smoothly. The objective of this research is a continuous and prompt analysis of these measures and responses of firms and fionancial institutions. On this basis it will be possible to evaluate the microeconomic foundation of macroeconomic behavior of Slovene economy. We would also like to determine behavioral characteristics of firms and financial institutions in transition, and model them properly. Finally, the goal of the project is to study changes of firms and financial institutions in transition from the perspective of their internationalization, management operations and strategic behavior.