Strategic restructuring of firms through investment is key to a transition from plan to market. Using data on industrial firms in the Czech Republic during 1992-98, we find that (a) foreign owned companies invest the most and cooperatives the least, (b) private firms do not invest more than...

We analyze investment behavior of the population of medium and large industrial firms located in the Czech Republic in 1992-95. We examine the relevance of alternative models of investment and test if investment behavior varies across ownership-legal form categories of firms. By using a large...