Institutional reforms, productivity and profitability: From rents to competition?

► Investigates the differential impact of reforms on state, foreign and domestic firms performance. ► Liberalisation has more impact on state owned firms as compared with domestic and foreign. ► The impact of reforms on profitability vis-à-vis productivity diverges. ► Competition-related and rent-related factors that affect revealed performance of firms differ. ► Home-host country sample of firms from CEE; controls for endogeneity of foreign ownership.