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This article describes the micro-foundations of failed market insertion in Romania’s chemical sector. During the EU pre-accession period, transnational integration regimes (TIRs) induced FDI-dependence. In turn, mass-privatization policies in conjunction with weak state capacities—evidenced by domestic development policies with limited operational use—caused failed market insertion. Two former state-owned enterprises (SOEs) are analyzed in this manner, and two pathways to failed integration emerge: via domestic mismanagement and multi-national corporations’ (MNCs) rent-seeking practices. The findings extend the diversity of the TIR framework and provide a nuanced account of downturn scenarios during EU integration.

Failed market insertion in Romania’s chemical industry: evidence from two former state-owned enterprises