THE EFFECTS OF GOVERNMENT DECENTRALIZATION DURING TRANSITION - EVIDENCE FROM ENTERPRISE-STATE RELATIONS IN MONGOLIA

A team of American economists examines the effects of governmental dec entralization in Mongolia, using data, gathered in mid-1996, from 251 large privatized enterprises that have either local or central governm ent ownership or are completely private. Focusing on enterprise-state relations, the authors investigate governmental involvement in corpora te bodies, soft budgets, subsidies, state purchases, lobbying, and dis pute resolution, and present evidence on how such relations vary with ownership and level of government. Discussion and analysis cover the e ffects of devolution of state supervisory power on enterprise-state re lations in light of the differing constraints and incentives facing lo cal and national politicians.