Restruction of Czech Manufacturing Enterprises: An Empirical Study

Abstract

This study is a contribution to the discussion about restructuring the manufacturing industry of the Czech Republic during the period 1991-93. The analysis is based on a unique data set created from a survey carried out in February 1994. The central objective of the study is to test whether the private enterprises perform better and hence restructure more than those owned and administered by the state. The analysis of the data shows that there are significant changes in management, organization, control of quality and production programs in the manufacturing firms from 1991 to 1993. Nevertheless it is interesting to learn how the pattern of change varies according to the structure of property rights, method of privatization, size and sector. The main finding is that private enterprises with a clearly identified owner are restructuring to a greater extent than the state enterprises during the1991-93 period.