Transitioning to a market economy in the Baltic States: Challenges and later developments in business regulation

This article offers a comparative assessment of significant factors of influence, major developments, national specifics, and the challenges confronting the Baltic States since independence in transitioning their economies from a central planning model to that of a market economy. The investigation took into consideration company law, competition law, and insolvency law of the respective countries and three stages of legal development – creation, the main reforms, and current developments. Further, the article asserts that the Baltic States have managed to create a sufficiently diverse palette of business forms that are properly constituted under law, are flexible, and convenient for all business types, especially small and medium business. Competition and insolvency laws of the Baltic States align closely with laws of the European Union and are being further developed. Stories of the success of Baltic States could serve as an example for other post-socialist countries.