This paper examines empirically the responsiveness of firm performance to ownership and market structures, sector and regional specificity, and varying degrees of soft budget constraints. It does so by providing a "snapshot" of the economy. For cross-sectional data on Ukrainian firms in 1998, the paper presents evidence that the firms in the snapshot behaved more as if they were still in a loosely reformed Soviet environment where exchange via interpersonal connections, rather than the price mechanism, determined the allocation of resources.
Bibliographical noteFunding Information:
Tatiana Andreyeva gratefully acknowledges support from the Economics Education and Research Consortium of the Eurasia Foundation and the World Bank (Grant no. R00-4521).
- Firm performance
- Soft budget constraint