Europe, Institutional reforms, liquidation, Poland, privatization, CASE Reports, CASE Network Studies and Analyses

Liquidation of Private Firms in Poland, 1990-1994


The subject of this paper is an issue of liquidation of private economic units , especially its legal, social - economic and statistical views. Until quite lately phenomena of liquidation or bankruptcy were hardly known in Poland.

They acquired importance only after free market economy has been established. Foundation and failure of new economic units are the keystone of this system, as the free market eliminates units of small effectiveness. Thanks to liquidation effectiveness of existing production resources increases in new, more profitable allocations. This approach to the subject allows us to examine liquidation as a process beneficial to national economy.