Growth and corporate governance in transition economies: an adaptation of the Ramsey model

Does corporate governance matter? Is it an important point with which politicians and economists of transition economies have to deal? Which is the model of corporate governance that will help transition economies to move towards a sustainable path of growth? Why does the economic performance of the transition economies differ and could this be due to the different types of public ownership chosen in their process of restructuring? This paper tries to provide a theoretical explanation to these questions.