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Structural Changes in the Manufacturing Industry of Transition Economies

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  • Malinka Koparanova
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    Abstract

    This paper addresses the pattern of structural change in selected transition and developed economies in Europe both from the point of view of a national economy and from cross-country perspective as well. It uses cross-industry country data at 2 and 3-digit level of the NACE classification to examine structural changes in the manufacturing industry in the second half of the 90’s. To asses the structural change the paper proposes a decomposition of productive efficiency into macroeconomic, or pro-cyclical component and “structural effect” component, based on two-error component model of unobservable effects. Estimation results from panel data models provided empirical evidence for a heterogeneous development pattern with dominating macroeconomic factors in many transition economies and prevailing structural factors in a few countries.

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    Bibliographic Info

    Article provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.

    Volume (Year): (2007)
    Issue (Month): 3 ()
    Pages: 3-42

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    Handle: RePEc:bas:econst:y:2007:i:3:p:3-42

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    1. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
    2. Stanley Fischer & Carlos A. Végh Gramont & Ratna Sahay, 1996. "Stabilization and Growth in Transition Economies," IMF Working Papers 96/31, International Monetary Fund.
    3. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 2000. " A Stochastic Frontier Analysis of Output Level and Growth in Poland and Western Economies," Economic Change and Restructuring, Springer, vol. 33(3), pages 185-202.
    4. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    5. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    6. László Halpern & Gábor Körösi, 2001. "Efficiency and market share in the Hungarian corporate sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 559-592, November.
    7. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 1999. " The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-87, November.
    8. Wendy Carlin & Jonathan Haskel & Paul Seabright, 2001. "Understanding ‘The Essential Fact about Capitalism’: Markets, Competition and Creative Destruction," National Institute Economic Review, National Institute of Economic and Social Research, vol. 175(1), pages 67-84, January.
    9. S. Fisher & R. Sahay & C. A. Vegh, 1997. "Stabilization and Growth in Transition Economies: The Early Experience," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
    10. Eduardo Borensztein & Dimitri G. Demekas & Jonathan D. Ostry, 1993. "An Empirical Analysis of the Output Declines in Three Eastern European Countries," IMF Staff Papers, Palgrave Macmillan, vol. 40(1), pages 1-31, March.
    11. Luca Barbone & Domenico J. Marchetti & Stefano Paternostro, 1999. "The early stages of reform in Polish manufacturing," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 157-177, March.
    12. n/a, 2001. "The determinants of economic efficiency in English and Welsh universities," NIESR Discussion Papers 157, National Institute of Economic and Social Research.
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