STATE-OWNED ENTERPRISES, SHIRKING AND TRADE LIBERALIZATION

@inproceedings{Ghosh2000STATEOWNEDES,
  title={STATE-OWNED ENTERPRISES, SHIRKING AND TRADE LIBERALIZATION},
  author={Madanmohan Ghosh and J. Whalley},
  year={2000}
}
We explore the implications of trade liberalization in economies with State Owned enterprises (SOEs) and shirking. SOEs are modelled as controlled by the members of the enterprise who determine output and effort levels, while facing output prices and wage rates set by government. Enterprise members must collectively meet a budget constraint that the value of sales equals the enterprise wage bill plus an exogenous enterprise commitment to the state budget. Labour can shirk either through low on… CONTINUE READING

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