By Iraj Hoshi, Ewa Balcerowicz, Leszek Balcerowicz
inefficient and uncompetitive companies specifically from the over-grown commercial area. those preliminary stipulations intended that, within the early phases of transition, the amount of entries and exits should be, through necessity, very excessive reflecting the big scale alterations that needed to ensue ahead of those economies reach a macroeconomic constitution in line with their point of improvement and with the wishes of a market-based financial system open to internationalcompetition. one of many major components of the reform programme in all economies in transition was once the liberalisation of access stipulations. besides the liberalisation of costs and international alternate, acceptable measures facilitating the institution of recent companies have been licensed within the very early section of reforms in all of those international locations. The effectiveness of liberalised access stipulations, in fact, is dependent upon the presence of applicable criminal and institutional framework within which new agencies will function. The institution of a conducive criminal and institutional surroundings, despite the fact that, takes for much longer. In perform, new businesses come into lifestyles sooner than the foundations of the sport are correctly verified. those principles increase steadily and aren't constantly, and far and wide, in step with the purpose of liberalising the access stipulations. The stipulations dealing with new companies, hence, have fluctuated in a few international locations in line with alterations within the political surroundings and in accordance with the power of alternative lobbies and curiosity groups.
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Extra resources for Barriers to Entry and Growth of New Firms in Early Transition: A Comparative Study of Poland, Hungary, Czech Republic, Albania and Lithuania
What was their value? (local currency) . xx. Have you received any assets or cash in the restitution process 210. Yes 211. No. Go to Qxxi. 212. If yes, what was their value? (local currency) 213. When did you receive these? (year) . xxi. How do you assess the age of your capital stock in comparison with the age of capital stock in the country? 214. Much younger 215. Slightly younger 216. About the same 217. Slightly older 218. Much older 14 For example for questions 187 and 198 in Albania and Lithuania , we should not have any response as we are only looking at companies formed after 1992.
Which month of the year (USE 1 TO 12)? v. Legal status of the company at present: 17. Limited liability Co. 18. How many owners or partners? 19. Partnership 20. How many partners? 21. Joint stock company 22. Cooperative 23. Others (please specify) vi. Has the legal status of the company changed since establishment 24. Yes. How? (please explain) . 25. No B. Regulatory Constraints Registration and Licensing i. In your experience, how difficult or time consuming were each of the following stages in the registration process and obtaining license for your company.
The liberalisation measures were implemented rather quickly and a massive wave of entry took place between 1990 and 1992. The response of entrepreneurs to liberalisation was immediate also because there was already a decade-long experience of private entrepreneurship in Hungary at the beginning of transition. In terms of legal barriers to entry, the registration process seems to be only a minor impediment but activity-specific licenses are difficult to obtain. The main barriers to growth are in the area of economic regulation.