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Barriers to Entry and Growth of New Firms in Early Transition - A Comparative Study of Poland, Hungary, Czech Republic, Albania and Lithuania (Paperback, Softcover reprint of the original 1st ed. 2003)
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Barriers to Entry and Growth of New Firms in Early Transition - A Comparative Study of Poland, Hungary, Czech Republic, Albania and Lithuania (Paperback, Softcover reprint of the original 1st ed. 2003)
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inefficient and uncompetitive enterprises especially from the
over-grown industrial sector. These initial conditions meant that,
in the early stages of transition, the volume of entries and exits
will be, by necessity, very high reflecting the large scale changes
that had to take place before these economies attain a
macroeconomic structure consistent with their level of development
and with the needs of a market-based economy open to
internationalcompetition. One of the main elements of the reform
programme in all economies in transition was the liberalisation of
entry conditions. Along with the liberalisation of prices and
foreign trade, appropriate measures facilitating the establishment
of new enterprises were approved in the very early phase of reforms
in all of these countries. The effectiveness of liberalised entry
conditions, of course, depends on the presence of appropriate legal
and institutional framework in which new firms will operate. The
establishment of a conducive legal and institutional environment,
however, takes much longer. In practice, new firms come into
existence before the rules of the game are properly established.
These rules develop gradually and are not always, and everywhere,
consistent with the aim of liberalising the entry conditions. The
conditions facing new firms, therefore, have fluctuated in some
countries in accordance with changes in the political environment
and in line with the strength of different lobbies and interest
groups."
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