Institutional Change and Firm Creation in East-Central Europe: An Embedded Politics Approach
42 Pages Posted: 19 Aug 2004
Date Written: June 2003
Abstract
A central debate about the transformation of post-communists countries is how the process of institution building impacts firm restructuring and creation. This debate has largely been dominated by approaches that emphasize either the depoliticization of institutional designs or the determining impact of pre-existing social structures. These views, however, have serious problems explaining one of the key comparative developments in East-Central Europe - the strong economic growth in Poland and the demise of the Czech Republic in the 1990s. This paper explains these differences by offering an alternative, embedded politics approach that views firm and institutional creation as intertwined experiments. Czech attempts to implant a depoliticized model of reform impeded the necessary reorganization of socio-political networks, in which firms are embedded. Poland facilitated institutional experiments not only in the ways it promoted negotiated solutions to restructuring, but also in the ways it empowered sub-national governments. The study utilizes data on manufacturing networks, privatization, bankruptcy, and regional government reforms collected over the past six years.
Keywords: Institutions, governance, restructuring, post communism, transitions
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Hungary's Bankruptcy Experience, 1992 - 93
By Cheryl W. Gray, Sabine Schlorke, ...
-
Banking Crises in Transition Economies: Fiscal Costs and Related Issues
By Helena Tang, Edda Zoli, ...
-
Debt as a Control Device in Transitional Economies: The Experiences of Hungary and Poland
By Herbert L. Baer and Cheryl W. Gray
-
Bank-Led Restructuring in Poland: Bankruptcy and its Alternatives
By Cheryl W. Gray and Arnold Holle
-
Bank-Led Restructuring in Poland: An Empirical Look at the Bank Conciliation Process
By Cheryl W. Gray and Arnold Holle
-
Bank Competition and Enterprise Restructuring in Transition Economies
-
The Polish Experience with Bank and Enterprise Restructuring
By Fernando Montes-negret and Luca Papi
-
Banking Reform in China: Driven by International Standards and Chinese Specifics