01803cas a2200253 a 4500 AALejournalIMF002751 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849639 1018-5941 BD-DhAAL BD-DhAAL Dinopoulos, Elias. Fiscal Constraintson Market-Oriented Reform in a Socialist Economy / Elias Dinopoulos, Timothy Lane. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (38 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 This paper develops a simple two-sector model of a socialist economy, in which government revenues required for servicing external debt are obtained from taxation of the socialized sector and from import taxes. Wages and employment in the socialized sector are the outcome of Nash bargaining between the government and an import-competing labor-dominated state enterprise with domestic market power. The effects of trade liberalization, demonopolization, technical improvements, and limitations on labor's bargaining power are examined, and the implications for privatization are considered. It is shown that some combination of tax reform and debt reduction may be a precondition for market-oriented reforms. Mode of access: Internet Lane, Timothy. IMF Working Papers; Working Paper ; No. 1991/075 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/075/001.1991.issue-075-en.xml IMF e-Library