The Effect of Policy and Policy Reforms on Non-Agricultural Enterprises and Employment in Developing Countries: A Review of Past Experiences

Abstract

This paper explores two sets of issues. The first concerns the magnitude of policy induced distortions in developing countries and the impact of these distortions on the economy, paying special attention to differential impacts between firms of different sizes and resulting effects on the level of employment. The second concerns the prior experience of donors and the LDC governments with the process of policy change.

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