TY - JOUR
T1 - Output and Exports in Transition Economies
T2 - A Labor Management Model
AU - Bennett, John
AU - Estrin, Saul
AU - Hare, Paul
PY - 1999/6
Y1 - 1999/6
N2 - The behavior of an oligopolistic industry in a transition economy is analyzed, assuming that the firms are labor-managed and the economy is open to international trade. The output of these firms is assumed to be of lower quality than the output of Western firms. Cournot equilibrium in the presence of bottlenecks is derived. Such bottlenecks may be particularly damaging because firms respond by cutting exports disproportionately. This may explain why countries such as those in the former Soviet Union, which have faced serious supply bottlenecks, have failed to develop exports, while the economies of Central Europe, where materials are more freely available, have seen rapid export growth.J. Comp. Econom., June 1999, 27(2), pp. 295-317. University of Wales, Swansea, United Kingdom; London Business School, London NW1 4SA, United Kingdom; and Heriot-Watt University, Edinburgh, United Kingdom. © 1999 Academic Press.
AB - The behavior of an oligopolistic industry in a transition economy is analyzed, assuming that the firms are labor-managed and the economy is open to international trade. The output of these firms is assumed to be of lower quality than the output of Western firms. Cournot equilibrium in the presence of bottlenecks is derived. Such bottlenecks may be particularly damaging because firms respond by cutting exports disproportionately. This may explain why countries such as those in the former Soviet Union, which have faced serious supply bottlenecks, have failed to develop exports, while the economies of Central Europe, where materials are more freely available, have seen rapid export growth.J. Comp. Econom., June 1999, 27(2), pp. 295-317. University of Wales, Swansea, United Kingdom; London Business School, London NW1 4SA, United Kingdom; and Heriot-Watt University, Edinburgh, United Kingdom. © 1999 Academic Press.
UR - http://www.scopus.com/inward/record.url?scp=0033149111&partnerID=8YFLogxK
U2 - 10.1006/jcec.1999.1578
DO - 10.1006/jcec.1999.1578
M3 - Article
VL - 27
SP - 295
EP - 317
JO - Journal of Comparative Economics
JF - Journal of Comparative Economics
IS - 2
ER -