The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank … institutions must improve significantly in order to yield a stable equilibrium in which the optimal number of firms is liquidated …. However, in a particular range, improving institutions may even decrease the number of bad firms liquidated. …

This paper investigates barriers to effective knowledge spillovers for markets in which the product can be … barriers to knowledge spillovers. We find that the incentive to foster spillovers to increase suppliers ́knowledge is limited … failed to increase the sectoral knowledge spillovers. By contrast, the participation in formal knowledge networks has been …