Why Transition Paths Differ: Russian and Chinese Enterprise Performance Compared
London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)
Sumon K. Bhaumik
Aston University, Aston Business School; Institute for the Study of Labor (IZA); University of Michigan at Ann Arbor - Stephen M. Ross School of Business, William Davidson Institute
Journal of Development Economics, Vol. 82, No.2, pp. 374-392, 2007
We use enterprise data to analyse and compare the determinants of enterprise performance in China and Russia. We find that in China, enterprise growth and efficiency is associated with rapid increases in factor inputs including management, as well as TFP, but not greatly associated with ownership or institutional factors. In contrast, sales growth in Russia is not associated with improvements in factor quantity (except for labor) or quality; TFP is not influenced by competition and privatization to outsiders does not enhance company performance relative to insider ownership. The main determinants of TFP are instead demand and institutional factors at a regional level.
Number of Pages in PDF File: 29
Keywords: enterprise performance, privatization in Russia and China, total factor productivity
JEL Classification: D23, L22, O12, P31working papers series
Date posted: May 1, 2003 ; Last revised: July 31, 2008
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