Comparative Analysis between Estonia and the Republic of Moldova in the Context of The Transition between a Planed Economy to Business Economy

Abstract

The transition from a command economy to a market economy represents one of the most significant economic transformations experienced by post-socialist countries in Central and Eastern Europe. This topic remains highly relevant today, as the long-term economic performance of these states continues to reflect the choices and strategies adopted during the early years of transition. This paper provides a comparative analysis of Estonia and the Republic of Moldova, two former Soviet republics that followed divergent economic and institutional paths after gaining independence. The study aims to examine the key reforms, policy approaches, and institutional frameworks that influenced their different development outcomes. By analyzing macroeconomic indicators and international development rankings, the research highlights the role of reform speed, institutional strength, and strategic governance in shaping successful economic transition. The findings contribute to a better understanding of how transition policies can determine long-term economic resilience and growth in emerging economies. CZU: 338.24.012.8(474.2+478); JEL: E3, O1, O5