The Role of Human Capital and Managerial Skills in Explaining Productivity Gaps Between East and West
AbstractThis paper assesses the determinants of productivity gaps between firms in the European transition countries and regions and firms in West Germany. The analysis is conducted at the firm level using a unique database constructed by fieldwork. The determinants tested in a simple econometric regression model focus on the issue of human capital and modern market-oriented management. The results are novel inasmuch as a solution was established for the puzzling results in related research with respect to a comparison of formal qualification between East and West. Furthermore, the analysis establishes that the kind of human capital and expertise mostly needed in postsocialist firms are related to the particular requirements of a competitive market-based economic environment. Finally, the analysis also finds empirical support for the role of capital deepening in productivity catchup, as well as the case that the gaps in labor productivity are most importantly rooted in a more labor-intensive production, which does not give rise to a competitive disadvantage.
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Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Eastern European Economics.
Volume (Year): 46 (2008)
Issue (Month): 6 (November)
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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106044
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- Nicholas Bloom & Helena Schweiger & John Van Reenen, 2011.
"The Land that Lean Manufacturing Forgot? Management Practices in Transition Countries,"
NBER Working Papers
17231, National Bureau of Economic Research, Inc.
- Nicholas Bloom & Helena Schweiger & John Van Reenen, 2011. "The Land that Lean Manufacturing Forgot? Management Practices in Transition Countries," CEP Discussion Papers dp1065, Centre for Economic Performance, LSE.
- Bloom, Nicholas & Schweiger, Helena & Van Reenen, John, 2011. "The land that Lean manufacturing forgot? Management practices in transition countries," CEPR Discussion Papers 8493, C.E.P.R. Discussion Papers.
- Nicholas Bloom & Helena Schweiger & John Van Reenen, 2011. "The land that Lean manufacturing forgot? Management practices in transition countries," Working Papers 131, European Bank for Reconstruction and Development, Office of the Chief Economist.
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