The Business Environment in the Transition
AbstractFollowing the collapse of planning, new small and medium-sized firms rapidly emerged in all transition economies. Using firm level data, we investigate the interaction between the widespread opportunities for new business activities such firms faced and their business environment. The business environment includes physical infrastructure, the availability of an educated labour force, provision of administrative and judicial services, the control of corruption and crime, and the stability of the macroeconomic environment. By comparing how different elements of the business environment affected firms in formerly planned economies with those in economies outside transition, we document not only the challenges faced by transition firms but also the effects of the planning legacy.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3934.
Date of creation: 2012
Date of revision:
infrastructure; human capital; institutions; planned economy; transition; business environment;
Find related papers by JEL classification:
- D29 - Microeconomics - - Production and Organizations - - - Other
- H49 - Public Economics - - Publicly Provided Goods - - - Other
- M29 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Other
- P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
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- Wendy Carlin & Mark Schaffer & Paul Seabright, 2012.
"Soviet power plus electrification: what is the long-run legacy of communism?,"
43-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jun 2012.
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- Carlin, Wendy & Schaffer, Mark E & Seabright, Paul, 2010. "A Framework for Cross-Country Comparisons of Public Infrastructure Constraints on Firm Growth," CEPR Discussion Papers 7662, C.E.P.R. Discussion Papers.
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