The Central Role of Entrepreneurs in Transition Economies

Posted: 18 Sep 2002

See all articles by John McMillan

John McMillan

CESifo (Center for Economic Studies and Ifo Institute)

Christopher M. Woodruff

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS)

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.

Suggested Citation

McMillan, John and Woodruff, Christopher, The Central Role of Entrepreneurs in Transition Economies. Journal of Economic Perspectives, Vol. 16, No. 3, Summer 2002. Available at SSRN: https://ssrn.com/abstract=330282

John McMillan (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Christopher Woodruff

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States
858-534-0590 (Phone)
858-534-3939 (Fax)

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