Institutions, exchange and firm growth: Evidence from Bulgarian agriculture

Abstract

The transition from a centrally planned to a more market-oriented economy provides a natural experiment on the role of institutions and exchange in economic development, and more specifically on firm growth. This paper uses survey data from Bulgaria to analyse the impact of exchange problems and institutional innovations on farm growth. Late payments have a negative influence on farm growth, while contracting with interlinked programmes has a positive effect on farm growth. © 2011 Oxford University Press and Foundation for the European Review of Agricultural Economics, all rights reserved.