Industrial Concentration Under Shock Therapy: Poland in Early Transition Years
ESRC Centre for Business Research (University of Cambridge) Working Paper
21 Pages Posted: 15 Apr 1998
Date Written: December 1997
Economic reforms in Poland have been aimed at engendering a competitive market economy. Reforms envisaged deconcentration, restructuring and privatisation of state enterprises. Together with private entry and growth, a competitive market structure was expected to evolve. Competitive shocks unleashed by the big bang were to influence the evolutionary process leading to mature market capitalism. We find that concentration increased promptly in several markets. A recurrent feature appears to be 'premature' exits (and significant contraction) of some large state enterprises before new private enterprises had grown large enough to challenge remaining incumbents.
JEL Classification: L11 L20 P21 P31
Suggested Citation: Suggested Citation