ICC Advance Access published online on May 3, 2007
Industrial and Corporate Change, doi:10.1093/icc/dtl035
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Economic reforms and the competitive environment of firms
Correspondence: Rogelio Oliva, Mays Business School, Texas A&M University, College Station, TX 77843-4217, USA. Email: roliva{at}tamu.edu.
Correspondence: Fernando F. Suarez, Boston University, School of Management, 595 Commonwealth Avenue, Boston, MA 02215, USA. Email: suarezf{at}bu.edu
This article lays out several hypotheses to establish a specific link between structural economic reforms and the competitive environment of firms. We test our hypotheses on data from the steel industry in three post-reform economies. We find that economic reforms tend to have a positive effect on environmental munificence, but they also produce short-term instability in the environment. We elaborate on the implications of our results for managers, policymakers, and scholars.