Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212660 
Year of Publication: 
2009
Series/Report no.: 
BOFIT Discussion Papers No. 16/2009
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Enterprises in post-socialist and transition economies often participate in providing infrastructure and social services to the surrounding community. We argue that this bundling of social and infrastructure goods provision with an enterprise s core operations is a fully rational choice in an uncertain environment. Using a stylized model, we show that this activity can be largely related to efforts by firms to increase their operational reliability. Our unique survey data suggest that this manifests itself through provision of more reliable infrastructure, stronger employee attachment to the firm, and better relations with the authorities.
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-987-4
Document Type: 
Working Paper

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