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Firm-level Inefficiency in Post-transition Economies

In: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Zagreb, Croatia, 9-10 September 2021

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  • Botrić, Valerija

Abstract

Firms in post-transition economies are frequently considered less efficient than those in more advanced market economies. By relying on the World Bank Enterprise Survey for the year 2019, firm-level technical inefficiency is estimated by the stochastic frontier analysis method for a sample of European post-transition countries. To be precise, the analysis included Albania, Bosnia and Herzegovina, Croatia, Czechia, Estonia, North Macedonia, Poland, Serbia, and Slovenia. Furthermore, the factors contributing to the firm-level inefficiency are explored in a comparative setting. The effects of the international orientation of the firm, foreign ownership, doing business with the government sector, presence of informal competitors, innovation activity, manager experience, and the age of the firm on the technical inefficiency are estimated. Results show that although some factors are common to a subsample of countries, not a single factor is significant in all the analysed economies.

Suggested Citation

  • Botrić, Valerija, 2021. "Firm-level Inefficiency in Post-transition Economies," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2021), Hybrid Conference, Zagreb, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Zagreb, Croatia, 9-10 September 2021, pages 34-43, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    • Handle: RePEc:zbw:entr21:262232
    DOI: 10.54820/FKSQ7558
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    More about this item

    Keywords

    firm inefficiency; post-transition economies; stochastic frontier analysis;
    All these keywords.

    JEL classification:

    • D29 - Microeconomics - - Production and Organizations - - - Other
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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