Aizenman, Joshua; Yi, Sang-Seung - National Bureau of Economic Research (NBER) - 1997
The purpose of this paper is to offer an explanation of why a developing country may adopt a partial reform under which …] prevents the entry of Foreign capital and taxes the private sector before reform. The impetus to reform comes from an improved … productivity of Foreign capital. The reform diminishes State capital's ability to tax the private sector but allows it to extract …