Post-communist countries offer new evidence on the relative importance of courts and relationships in enforcing contracts. Belief in the effectiveness of courts has a significant positive effect on the level of trust shown in new relationships between firms and their customers. Well-functioning...

Post-communist countries offer new evidence on the relative importance of courts and relationships in enforcing contracts. Belief in the effectiveness of courts has a significant positive effect on the level of trust shown in new relationships between firms and their customers. Well-functioning...

New firms have been formed at a striking rate in the transition countries, improving welfare by creating jobs, supplying consumer goods, constraining the market power of the state-owned firms, and building political momentum for reform. We summarize evidence on the relative role of entrepreneurs...