Abstract:Ever since the Soviet Union collapsed in 1991, transition countries have adopted the market economy system. However, some of these countries are currently more tied in reciprocal economic relationships with European Union members, the pro-EU group, while[ others continue to maintain preexisting ties, the pro-Russia group. The purpose of this paper is set to tackle how firms perform differently across two groups both theoretically and empirically. In particular, a game model is first developed to evaluate if an… Show more
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