The main goal of this paper is to help determine why the communist (and partly even transition) economies are substantially inefficient in comparison with their market counterparts. The reasons will be analyzed with the help of the profit maximization model (based on the efficiency wage theory)...

We investigate determinants of foreign ownership in newly privatized firms. We analyze data on privatized Czech firms to address two related general questions. First, what characteristics distinguish transition firms that attract a foreign investor? Second, how do firm-specific characteristics...