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Institutions and Market Creation: Evidence from the Experience of Transition Countries

36 Pages Posted: 2 Oct 2013  

Lionel Artige

University of Liege - HEC Management School

Rosella Nicolini

Universitat Autònoma de Barcelona

Date Written: October 1, 2013

Abstract

This paper proposes an empirical analysis for asessing the extent to which multinational firms can effectively support market creation strategies. Our setting focuses on the transition countries, namely ex-socialist countries. Focusing on the lending policy of the European Bank for Reconstruction and Development (EBRD), we build an original database by organizing the public records of the credit contracts signed by the EBRD. Our empirical strategy is able to disentangle that the credit selection that favored the entry of foreign multinational corporations into these countries served as one of the pillars for consolidating their transition to the market economy.

Keywords: Investments, Multinational firms, Transition Economies

JEL Classification: F20, F63, P33, P33

Suggested Citation

Artige, Lionel and Nicolini, Rosella, Institutions and Market Creation: Evidence from the Experience of Transition Countries (October 1, 2013). Available at SSRN: https://ssrn.com/abstract=2334130 or http://dx.doi.org/10.2139/ssrn.2334130

Lionel Artige

University of Liege - HEC Management School ( email )

Boulevard du Rectorat 7 (B31)
LIEGE, Liege 4000
Belgium

Rosella Nicolini (Contact Author)

Universitat Autònoma de Barcelona ( email )

Edifici B
Campus UAB
Bellaterra, Barcelona 08193
Spain

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