Mongolia's mass privatization program was implanted in a country that lacked the very basic institutions of capitalism. This paper examines the effects of competition and ownership on the efficiency of the newly privatized enterprises, using a representative sample of enterprises and controlling for possible selection biases. Competition has quantitatively large effects; perfectly competitive firms having nearly double the efficiency of monopolies.
Competition and Privatization Amidst Weak Institutions: Evidence from MongoliaJames H. Anderson, Young Lee and Peter Murrell ,
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