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Abstract
This paper provides new evidence on progress in transition and the ‘readiness’
of enterprises for accession to the EU using a detailed survey administered to
approximately 200 manufacturing firms in each of Poland, Romania and Spain. A
major innovation is the use of a market economy and member country of the EU –
Spain – as a benchmark against which to measure progress in transition. The
paper finds that new private firms (firms established as private ab initio) in
both Poland and Romania are growing the fastest, but on measures of
integration and investment, it is Polish ab initio private firms and
privatised firms that look most similar to the Spanish. Polish state-owned
firms, and Romanian state-owned, privatised and (to a lesser extent) ab initio
private firms, more often lag behind. With respect to compliance with EU
directives, Poland tends to lag behind Spain but lie significantly ahead of
Romania. Levels of awareness of and compliance with directives did not vary
with ownership type amongst the east European firms. Progress in transition at
the country level seems to be consistent with improvements in compliance with
the major components of the acquis.
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