This article explores the dynamics between external and domestic factors in legal reform in transition countries as demonstrated by the case of Ukrainian company law reform. Contrary to theoretical explanations pointing to the primacy of external supply and incentives, we locate the determinants of legal change firmly in the domestic arena. We conceptualise domestic factors using a political science framework regarding the role of veto players parliamentary factions and related informal business actors. The analysis supports the critical law and development literature in underlying the importance of the demand for law by such players. This demand, however, affects not just the implementation process but is critically expressed in the strategic use of formal legislative reform.
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