Opportunities and threats related to the implementation of the so-called third way concept

Abstract

PURPOSE: The purpose of this study is to answer the question if countries with relatively lower GDP per capita should build their wealth and competitiveness coping the Nordic socio-economic model of economic policy.

DESIGN/METHODOLOGY/APPROACH: The research method used in this paper is primarily descriptive, comprising the analysis of various documentary sources of socio-economic Scandinavian model and data analysis conducted on that topic.

FINDINGS: The results of the research show that expansion of government in Nordic countries has slowed growth, but slow growth for a rich nation is much less of a burden than slow growth in a poor nation. That means that sources of economic growth in countries with lower level of GDP per capita should be free market policy implementation, low taxes, flexible markets and a low contribution of the state to the GDP.

PRACTICAL IMPLICATIONS: The economic and social policy analyzed in the article might be an example for some countries to implement it.

ORIGINALITY/VALUE: The value of this article findings is important for economic and social policy in the context of defining the sources of economic growth and risk of coping solutions from other countries.