Disorganisation in the Transition Process: Firm Level Evidence from Ukraine
AbstractMost post-communist economies are characterized by an initial collapse in aggregate output. Blanchard and Kremer (1997) and Roland and Verdier (1997) have recently modelled supply side distortions, disorganization in the links of production, that can lead to a short-term output contraction after market liberalisation and a recovery thereafter. This paper is the first to illustrate and test the effects of disorganization in the transition process by using a unique data set of 300 Ukrainian firms. Our results show that for firms that existed under central planning disorganization constrains employment and productivity growth during the transition process to a market economy. In contrast, disorganization plays no role in the determination of employment and productivity growth in newly established private firms.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 7198.
Length: 30 pages
Date of creation: 01 May 1998
Date of revision:
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disorganization; transition process; de novo firms;
Other versions of this item:
- Konings, Jozef & Walsh, Patrick Paul, 1998. "Disorganization in the Transition Process: Firm-Level Evidence from Ukraine," CEPR Discussion Papers 1928, C.E.P.R. Discussion Papers.
- P0 - Economic Systems - - General
- O0 - Economic Development, Technological Change, and Growth - - General
- D0 - Microeconomics - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-10-20 (All new papers)
- NEP-CIS-2003-10-20 (Confederation of Independent States)
- NEP-ENT-2003-10-20 (Entrepreneurship)
- NEP-TRA-2003-10-20 (Transition Economics)
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