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The present paper focuses on privatised firms in Albania, where the evolution of ownership structure has not been studied before. The paper responds to two specific questions: (i) is the evolution of ownership path dependent, i.e., does ownership structure in the past affect ownership now?; and (ii) what influences the evolution of ownership structure of privatised firms. We use the information from an enterprise survey conducted in 2003 and the dynamic panel data techniques to identify the relative importance of previous ownership structure as well as other firm-specific variables.

The evolution of ownership structure, path dependency and enterprise performance using dynamic panel data models