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During the Soviet period industrial firms not only formed the backbone of the economy but also directly provided a wide range of benefits to their municipalities. Firms were in charge of supplying a great variety of social services, such as housing, medical care and day care. The need to divest...
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We use new firm-level data to examine the effects of firm divestitures and privatization on corporate performance in a …'s profitability but do not alter its scale of operations, while the effect of privatization depends on the resulting ownership … structure sometimes improving performance and sometimes bringing about decline. The effects of privatization are thus more …
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