This study of how privatization and stabilization (hard budget constraints) affect enterprise behavior shows that privatized firms consistently outperform state enterprises in productivity growth. Total factor productivity improves in privatized firms, where there is also less overemployment...

While institutional differences have been found to affect country growth patterns, much has remained unexplained, including how economic actors "overcome" institutional weaknesses and how internationalization helps or hinders development. Banking is an institutionally-intensive activity and the...