The rebirth of competition and the extensive exit that has resulted are among the most important developments in Central Europe since the demise of Communism. This text examines why, how, and to what extent enterprises have reduced their size or left the market altogether during the first years of the transition from socialism to capitalism in the Czech Republic, Hungary and Poland.

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Leszek Balcerowicz is Professor at Warsaw School of Economics. He was Deputy Prime Minister and Minister of Finance in Poland.

Iraj Hoshi is Principal Lecturer in Economics at Staffordshire University, Stroke-on-Trent, UK.

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