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The Central Role of Entrepreneurs in Transition Economies

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Author Info
John McMillan
Christopher Woodruff

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Abstract

New firms have been formed at a striking rate in the transition countries, improving welfare by creating jobs, supplying consumer goods, constraining the market power of the state-owned firms, and building political momentum for reform. We summarize evidence on the relative role of entrepreneurs and the state in economic reform. Early in the transition, the government's main contribution to entrepreneurship was to avoid impeding the entrepreneurs' self help. Later, the entrepreneurs came to need positive assistance from the state: institutions to support contracting and finance.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 16 (2002)
Issue (Month): 3 (Summer)
Pages: 153-170
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Handle: RePEc:aea:jecper:v:16:y:2002:i:3:p:153-170

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  3. Earle, John S. & Sakova, Zuzana, 2000. "Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies," Labour Economics, Elsevier, vol. 7(5), pages 575-601, September. [Downloadable!] (restricted)
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  5. Fafchamps, M., 1999. "Networks, Communities, and Markets in Sub-Saharan Africa: Implications for Firm Growth and Investment," Working Papers Series 99-24, Centre for the Study of African Economies, University of Oxford.
  6. Lubomir Lizal & Jan Svejnar, 2001. "Investment, Credit Rationing and the Soft Budget Constraint: Evidence from Czech Panel Data," William Davidson Institute Working Papers Series 363, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  7. Simon Johnson & John McMillan, 2002. "Courts and Relational Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(1), pages 221-277, April.
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  8. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," NBER Working Papers 8852, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Woodruff, Christopher, 1998. "Contract enforcement and trade liberalization in Mexico's footwear industry," World Development, Elsevier, vol. 26(6), pages 979-991, June. [Downloadable!] (restricted)
  10. Li, Hongbin & Rozelle, Scott, 2000. "Saving or stripping rural industry: an analysis of privatization and efficiency in China," Agricultural Economics, Blackwell, vol. 23(3), pages 241-252, September. [Downloadable!] (restricted)
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  12. A. Richter & M.E. Schaffer, 1996. "The Performance of De Novo Private Firms in Russian Manufacturing," CERT Discussion Papers 9610, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  20. John McMillan & Christopher Woodruff, 1999. "Interfirm Relationships And Informal Credit In Vietnam," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1285-1320, November. [Downloadable!] (restricted)
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  21. Kranton, Rachel E, 1996. "Reciprocal Exchange: A Self-Sustaining System," American Economic Review, American Economic Association, vol. 86(4), pages 830-51, September. [Downloadable!] (restricted)
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  23. Wendy Carlin & Steven Fries & Mark Schaffer & Paul Seabright, 2001. "Competition and Enterprise Performance in Transition Economies: Evidence from a Cross-country Survey," William Davidson Institute Working Papers Series 376, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  24. Berkowitz, Daniel & Holland, Jonathan, 2001. "Does privatization enhance or deter small enterprise formation?," Economics Letters, Elsevier, vol. 74(1), pages 53-60, December. [Downloadable!] (restricted)
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  27. repec:bep:thecon:v:1:y:2001:i:contributions/1/1:p:1030-1030 is not listed on IDEAS
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