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The Business Environment in the Transition

Wendy Carlin () and Mark Schaffer ()

No 3934, CESifo Working Paper Series from CESifo

Abstract: Following 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.

Keywords: infrastructure; human capital; institutions; planned economy; transition; business environment (search for similar items in EconPapers)
JEL-codes: D29 H49 M29 P21 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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