Output and Exports in Transition Economies: A Labour Management Model

Saul Estrin and Paul Hare ()

No 2080, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The behaviour of an oligopolistic industry in a transition economy is analysed, assuming that the firms are labour-managed and the economy is open to international trade. The output of these firms is assumed to be of lower quality than the output of Western firms. Cournot equilibrium in the presence of bottlenecks is derived. Such bottlenecks may be particularly damaging because firms respond by cutting exports disproportionately. This may explain why countries, such as those in the former Soviet Union, which have faced serious supply bottlenecks have failed to develop exports while the economies of Central Europe, where materials are more freely available, have seen rapid export growth.

Keywords: Cournot oligopoly; Exports; labour management; Transition (search for similar items in EconPapers)
JEL-codes: D21 P31 (search for similar items in EconPapers)
Date: 1999-02
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Citations: View citations in EconPapers (1)

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Journal Article: Output and Exports in Transition Economies: A Labor Management Model (1999)
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