Competition and Firm Performance: Lessons from Russia
SITE Working Paper No. 154
35 Pages Posted: 12 Apr 2000
Date Written: March 2000
The "big-bang" liberalization of the inefficient Russian economy in 1992 provides a fruitful setting for analyzing the impact of several dimensions of market competition and other factors on enterprise efficiency. We analyze 1992-1998 panel data on 14,961 enterprises covering 75 percent of industrial employment, emphasizing the varied sources, geographic scope, intensity, time path, and survival effects of competitive pressures. We find large, positive effects on TFP from competition in domestic product and local labor markets, and from imports and better transportation infrastructure, although the first effect appears only gradually. Non-state firms outperform state enterprises, even after correction for selection bias.
JEL Classification: D24, D4, J42, L1, L33, P23, P31
Suggested Citation: Suggested Citation