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Industrial Economics of the Transition: Determinants of Enterprise Efficiency in Czechoslovakia and Hungary

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Author Info
Brada, Josef C
King, Arthur E
Ma, Chia Ying

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Abstract

Firm-level data are employed to estimate frontier production functions for Czechoslovak industry in 1990 and for Hungarian industry in 1991. In both countries, there is evidence of inefficient firms, with the distribution of efficiency characterized by a small number of inefficient outliers. Enterprise efficiency is positively related to firm size and negatively to managerial effort expended in lobbying for easier targets but export orientation has no effect on efficiency. Most importantly, in Hungary's more reformed economy, efficient firms are more profitable, while profit redistribution by the center in Czechoslovakia led to an inverse relationship between efficiency and profitability. Copyright 1997 by Royal Economic Society.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 49 (1997)
Issue (Month): 1 (January)
Pages: 104-27
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Handle: RePEc:oup:oxecpp:v:49:y:1997:i:1:p:104-27

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  1. Chih-Hai Yang & Ku-Hsieh Chen, 2009. "Are small firms less efficient?," Small Business Economics, Springer, vol. 32(4), pages 375-395, April. [Downloadable!] (restricted)
  2. Michael Funke & Jörg Rahn, 2000. "How Efficient is the East German Economy? An Exploration With Micro Data," Quantitative Macroeconomics Working Papers 20012, Hamburg University, Department of Economics. [Downloadable!]
    Other versions:
  3. Astrid Cullmann & Christian von Hirschhausen, 2007. "From Transition to Competition: Dynamic Efficiency Analysis of Polish Electricity Distribution Companies," Discussion Papers of DIW Berlin 716, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  4. Sergei Guriev & Barry W. Ickes, 2000. "Microeconomic Aspects of Economic Growth in Eastern Europe and the Former Soviet Union, 1950-2000," William Davidson Institute Working Papers Series 348, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  5. Gabor Korosi & Laszlo Halpern, 2000. "Efficiency and Market Share in Hungarian Corporate Sector," IEHAS Discussion Papers 0009, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
    Other versions:
  6. Justin Lifu Lin, 2004. "Lessons of China's Transition from a Planned Economy to a Market Economy," Development Economics Working Papers 446, East Asian Bureau of Economic Research. [Downloadable!]
  7. Randall K. Filer & Jan Hanousek, 2002. "Data Watch: Research Data from Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 225-240, Winter. [Downloadable!] (restricted)
    Other versions:
  8. Pursey Heugens & Stelios Zyglidopoulos, 2008. "From social ties to embedded competencies: the case of business groups," Journal of Management and Governance, Springer, vol. 12(4), pages 325-341, November. [Downloadable!] (restricted)
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