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How Transition Paths Differ: Enterprise Performance in Russia and China
Sumon K. Bhaumik Brunel University; University of Michigan at Ann Arbor - Stephen M. Ross School of Business - William Davidson Institute; Institute for the Study of Labor (IZA) Saul Estrin London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA) January 2005 IZA Discussion Paper No. 1484; William Davidson Institute Working Paper No. 744 Abstract: We use enterprise data to analyse and contrast 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, but not correlated with ownership or institutional factors. However, in Russia, enterprise growth is not associated with increases in factor quantity (except for labor) or quality. The main determinants of company performance are instead demand and institutional factors at a regional level. We explore possible interpretations of these results, including the impact of institutional and managerial quality.
Keywords: enterprise performance, privatization in Russia and China JEL Classifications: D23, L22, O12, P31 Working Paper SeriesDate posted: February 09, 2005 ; Last revised: July 18, 2005Suggested CitationContact Information
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