01869cas a2200241 a 4500 AALejournalIMF000101 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850154 1018-5941 BD-DhAAL BD-DhAAL Husain, Aasim. Private Sector Development in State-Dominated Economies / Aasim Husain. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The development of a competitive private sector is widely viewed as a central element in the economic transformation of central and eastern Europe. Despite significant reforms in these economies, however, state enterprises continue to produce a substantial share of output. This paper considers how the profitability of private firms is affected by the size of the state-owned sector. Closures that result in a decrease in the number of state-owned firms reduce total industrial output in the short run, but encourage the entry of private firms into the industry in the longer run and lead to an increase in total output. Policies that result in a depreciation of the real exchange rate or an improvement in the efficiency of credit markets will tend to increase output in the short run, but their effect may be attenuated in the long run. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/079 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/079/001.1992.issue-079-en.xml IMF e-Library