dunnettreader + manufacturing + central_asia   1

Olivier Blanchard & Michael Kremer - Disorganization - Quarterly Journal of Economics (1997)
Under central planning, many firms relied on a single supplier for critical inputs. Transition has led to decentralized bargaining between suppliers and buyers. Under incomplete contracts or asymmetric information, bargaining may inefficiently break down, and if chains of production link many specialized producers, output will decline sharply. Mechanisms that mitigate these problems in the West, such as reputation, can only play a limited role in transition. The empirical evidence suggests that output has fallen farthest for the goods with the most complex production process, and that disorganization has been more important in the former Soviet Union than in Central Europe. - downloaded via iPhone to DBOX
trust  Russia  information-asymmetric  20thC  privatization  industrialization  reputation  Eastern_Europe  risk_management  article  Central_Asia  economic_history  information-markets  transition_economies  supply_chains  manufacturing  downloaded  post-Cold_War 
august 2016 by dunnettreader

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