Abstract

This paper examines Poland's post-socialist economic transformation at the industry level. Cluster analysis is used to group sectors which have experienced similar patterns of transformation. The analysis identifies two distinct patterns. In one group, sector restructuring has been accomplished largely through firm turnover. The economic incentives established with the 1990 “Big Bang” reforms have been sufficient to promote restructuring in this group. In a second group, restructuring has lagged. Industry restructuring has been held back by slow progress in restructuring large state-owned enterprises. Several explanations for this dichotomy, and the implications for reform are discussed.

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