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Efficiency and Ownership Structure: The Case of Poland

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Author Info
Karl-Markus Modén
Pehr-Johan Norbäck
Lars Persson

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Abstract

We examine the effects of foreign entry on productive efficiency during the Polish investment liberalisation. The performance of foreign acquisitions is compared to foreign firms entering the market through greenfield entry, as well as domestic acquisitions of privatised firms, domestic greenfields and remaining state-owned (non-privatised) firms during the period 1995-2000. We find that foreign privatised firms have realised larger productivity gains than all types of domestic firms and that this is not due to higher price-cost margins, which is consistent with the idea that foreign firms bring in firm-specific knowledge. Foreign greenfields have the highest average labour productivity, while foreign privatisations show the largest productivity increase. Copyright 2008 The Authors.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9701.2007.01065.x
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Article provided by Blackwell Publishing in its journal World Economy.

Volume (Year): 31 (2008)
Issue (Month): 3 (03)
Pages: 437-460
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Handle: RePEc:bla:worlde:v:31:y:2008:i:3:p:437-460

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Ann P. Bartel & Ann E. Harrison, 2005. "Ownership Versus Environment: Disentangling the Sources of Public-Sector Inefficiency," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 135-147, 02. [Downloadable!] (restricted)
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  4. Saul Estrin, 2002. "Competition and Corporate Governance in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 101-124, Winter. [Downloadable!] (restricted)
  5. Roman Frydman & Cheryl Gray & Marek Hessel & Andrzej Rapaczynski, 1999. "When Does Privatization Work? The Impact Of Private Ownership On Corporate Performance In The Transition Economies," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1153-1191, November. [Downloadable!] (restricted)
  6. Bertrand, Olivier & Zitouna, Habib, 2005. "Domestic versus Cross-Border Acquisitions: Which Impact on the Target Frims' Performance?," Working Paper Series 647, Research Institute of Industrial Economics. [Downloadable!]
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  7. Brada, Josef C, 1996. "Privatization Is Transition--Or Is It?," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 67-86, Spring. [Downloadable!] (restricted)
  8. Schmidt, Klaus M. & Schnitzer, Monika, 1997. "Methods of Privatization: Auctions, Bargaining and Give-Aways," CEPR Discussion Papers 1541, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  10. Lipsey, Robert E. & Sjoholm, Fredrik, 2004. "Foreign direct investment, education and wages in Indonesian manufacturing," Journal of Development Economics, Elsevier, vol. 73(1), pages 415-422, February. [Downloadable!] (restricted)
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  12. Arnold, Jens & Smarzynska Javorcik, Beata, 2005. "Gifted Kids or Pushy Parents? Foreign Acquisitions and Plant Performance in Indonesia," CEPR Discussion Papers 5065, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. Konings, Jozef & Van Cayseele, Patrick & Warzynski, Frederic, 2003. "The Effect of Privatization and Competitive Pressure on Firms' Price-Cost Margins: Micro Evidence from Emerging Economies," CEPR Discussion Papers 3703, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Norbäck, Pehr-Johan & Persson, Lars, 2005. "Investment Liberalization - Why a Restrictive Cross-Border Merger Policy can be Counterproductive," Working Paper Series 644, Research Institute of Industrial Economics. [Downloadable!]
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  15. Sándor Csengödi & Rolf Jungnickel & Dieter M. Urban, 2008. "Foreign Takeovers and Wages in Hungary," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(1), pages 55-82, April. [Downloadable!] (restricted)
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  20. Bortolotti, Bernardo & Fantini, Marcella & Siniscalco, Domenico, 2001. "Privatisation Around the World: New Evidence from Panel Data," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  22. Sándor Csengodi & Rolf Jungnickel & Dieter Urban, 2005. "Foreign Taleovers and Wages: Theory and Evidence from Hungary," Development Working Papers 208, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  23. Görg, Holger & Greenaway, David, 2002. "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?," CEPR Discussion Papers 3485, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  1. Karpaty, Patrik, 2004. "Are foreign owned firms more productive? Evidence from Swedish firm data," Working Papers 2004:6, Örebro University, Swedish Business School. [Downloadable!]
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