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The Unofficial Economy in Transition

Open access
Johnson, Simon, Kaufmann, Daniel, Shleifer, Andrei, Goldman, Marshall I., Weitzman, Martin L.·1997·Brookings Papers on Economic Activity

Abstract

THE ECONOMIES of eastern Europe and the former Soviet Union (FSU) escaped communism with a heavy burden. When central planning collapsed, they continued to suffer from widespread political control of economic activity. Such politicization had to be reduced significantly for small business formation and growth to begin. In recent years, some of these countries have succeeded much better than others in replacing political control with functioning market institutions. As this paper shows, they are also the countries that have had the healthiest public finances, the smallest unofficial economies, and the best records of growth. The politicization of economic life can usefully be thought of as the exercise by politicians of control rights over business. ' Such rights may include regulatory powers over privatized and private firms, the ability to regulate and restrict entry, control over the use of land and real estate that private businesses occupy, the determination and collection of taxes

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Metadata

Authors
Johnson, S., Kaufmann, D., Shleifer, A., Goldman, M. I., & Weitzman, M. L.
Venue
Brookings Papers on Economic Activity
Publisher
JSTOR
Published
1997
Volume
1997
Issue
2
Pages
159
ISSN
0007-2303 (ISSN-L)
OpenAlex
W2060730171
Cited by
1,166
References
0
FWCI
177.43
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: The Unofficial Economy in Transition. https://app.cochat.ai/papers/10.2307/2534688
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Johnson, S., Kaufmann, D., Shleifer, A., Goldman, M. I., & Weitzman, M. L. (1997). The Unofficial Economy in Transition. Brookings Papers on Economic Activity. https://doi.org/10.2307/2534688

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