| The role of state firms and money in the transition economies |
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| by |
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| Gerasimos T. Soldatos, University of Macedonia |
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| JEL classification : P270, E290 |
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| Abstract |
| This paper argues that the neglect of state enterprises in transition economies has been a major reason for the high unemployment experienced by most of these economies. Renewing the interest in such enterprises could improve their performance, thus rendering them more attractive to foreign investors as well. Simultaneously, policy should be aiming at removing credit constraints and ensuring lending discipline. Only then unemployment and the broader problem of principal-agent relations will start to be confronted successfully. |
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