Advanced Search
MyIDEAS: Login to save this paper or follow this series

Convergence in institutions and market outcomes: cross-country and time-series evidence from the business environment and enterprise performance surveys in transition economies

Contents:

Author Info

  • Mitra, Pradeep

    (The World Bank)

  • Muravyev, Alexander

    (IZA and DIW Berlin)

  • Schaffer, Mark E.

    (CERT, Heriot-Watt University and CEPR/IZA/WDI)

Abstract

This paper uses firm-level data from the Business Environment and Enterprise Performance Surveys to study the process of convergence of transition countries with developed market economies. The study focuses on competition and market structure, finance and the structure of lending to firms, and how firms respond to the economic environment by restructuring. The authors find substantial evidence of convergence in a number of dimensions. The pattern of growth at the country, sector, and firm levels shows rapid growth of the new private sector and of the micro and small-firm sectors, with the size distribution of firms moving toward the pattern observed in the surveys of developed market economies. In finance, increasing reliance on retained earnings in transition countries reflects a maturation of the sector as new firms come to rely less on informal and family sources of finance. The authors find evidence of an inverse-U pattern, with the peak of restructuring activity taking place in 2002, the middle of the period analyzed. Throughout, the regional patterns suggest greater convergence in the transition countries that joined the European Union in 2004 than in the other, lower-income transition economies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2009/01/13/000158349_20090113083329/Rendered/PDF/WPS4819.pdf
File Function: Full text
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4819.

as in new window
Length: 82 pages
Date of creation: 01 Jan 2009
Date of revision:
Handle: RePEc:wbk:wbrwps:4819

Note: File download (PDF): http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2009/01/13/000158349_20090113083329/Rendered/PDF/WPS4819.pdf
Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: accounting; accounting standards; advanced countries; bank borrowing; bank financing; bank loan; branches; business cycle; Business Environment; business infrastructure; capital accumulation; capital markets; capital stock; capitalist economies; competitive market; competitive markets; competitors; cost of finance; country dummies; developing countries; domestic competition; domestic competitions; domestic market; downsizing; dummy variable; dummy variables; Economic Development; economic growth; economic recovery; economic structure; economics; employment; employment growth; enterprise finance; Enterprise Performance; enterprise restructuring; entrepreneurship; equity financing; expansion; exporters; external finance; external financing; factor markets; financial constraints; financial crisis; financial development; financial institutions; financial markets; Financial Risk; financial sector; financing obstacles; firm growth; firm performance; firm size; firms; fixed investment; foreign competition; foreign markets; foreign owners; foreign ownership; globalization; growth rate; growth rates; human capital; income; income level; income levels; inflation; inflation rates; informal finance; innovation; instrument; internal financing; International Bank; international trade; investment climate; job creation; Job creation rates; labor market; labor productivity; legal protection; legal system; lenders; licensing; living standards; loan; loans from family; local market; low-income country; market conditions; market economies; market economy; market environment; market power; market structure; mature market; money lenders; monopoly; Motivation; negative shock; new market; new markets; new product; new products; oligopoly; output; Ownership Structure; price elasticity of demand; private sector growth; privatization; product markets; product quality; productivity; productivity growth; profit opportunities; property rights; rapid expansion; rapid growth; return; Risk Management; sales; size of firms; small firm; small firms; Socialist Enterprises; soft budget constraint; soft budget constraints; startup; state bank; State banks; stock markets; suppliers; sustainable growth; trading; transition countries; transition country; Transition Economies; transition economy; use of bank credit;

References

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.:
as in new window
  1. Wendy Carlin & Saul Estrin & Mark E. Schaffer, 1999. "Measuring Progress in Transition and towards EU Accession. A comparison of manufacturing firms in Poland, Romania and Spain," CERT Discussion Papers 9902, Centre for Economic Reform and Transformation, Heriot Watt University.
  2. Kornai Janos, 1994. "Transformational Recession: The Main Causes," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 39-63, August.
  3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  4. Bilsen, Valentijn & Konings, Jozef, 1998. "Job Creation, Job Destruction, and Growth of Newly Established, Privatized, and State-Owned Enterprises in Transition Economies: Survey Evidence from Bulgaria, Hungary, and Romania," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 429-445, September.
  5. Jan Fidrmuc, 2001. "Economic Reform, Democracy and Growth During Post-Communist Transition," William Davidson Institute Working Papers Series 372, William Davidson Institute at the University of Michigan.
  6. Dani Rodrik, 2006. "Goodbye Washington Consensus, Hello Washington Confusion? A Review of the World Bank's Economic Growth in the 1990s: Learning from a Decade of Reform," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 973-987, December.
  7. Gérard Roland, 2000. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182033, December.
  8. Veblen, Thorstein, 1915. "Imperial Germany and The Industrial Revolution," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1915.
  9. Gomulka, Stanislaw, 1986. "Soviet Growth Slowdown: Duality, Maturity, and Innovation," American Economic Review, American Economic Association, vol. 76(2), pages 170-74, May.
  10. Olivier Blanchard, 2007. "A Review of Richard Layard, Stephen Nickell, and Richard Jackman's Unemployment: Macroeconomic Performance and the Labour Market," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 410-418, June.
  11. Alan Bevan & Saul Estrin & Mark E. Schaffer, 1999. "Determinants of Enterprise Performance during Transition," CERT Discussion Papers 9903, Centre for Economic Reform and Transformation, Heriot Watt University.
  12. Haltiwanger, John C. & Vodopivec, Milan, 1999. "Gross worker and job flows in a transition economy : an analysis of Estonia," Policy Research Working Paper Series 2082, The World Bank.
  13. Wendy Carlin & Mark Schaffer & Paul Seabright, 2006. "Where are the Real Bottlenecks? A Lagrangian Approach to Identifying Constraints on Growth from Subjective Survey Data," CERT Discussion Papers 0604, Centre for Economic Reform and Transformation, Heriot Watt University.
  14. Ichiro Iwasaki, 2007. "Enterprise Reform And Corporate Governance In Russia: A Quantitative Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(5), pages 849-902, December.
  15. Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
  16. Colin Mayer, 1990. "Financial Systems, Corporate Finance, and Economic Development," NBER Chapters, in: Asymmetric Information, Corporate Finance, and Investment, pages 307-332 National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Zuzana Brixiova & Balazs Egert, 2010. "Modeling Institutions, Start-Ups and Productivity during Transition," CESifo Working Paper Series 2952, CESifo Group Munich.
  2. Brixiova, Zuzana & Ncube, Mthuli, 2013. "Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia," IZA Discussion Papers 7553, Institute for the Study of Labor (IZA).
  3. World Bank, 2010. "Belarus - Industrial Performance before and During the Global Crisis : Belarus Economic Policy Notes - Note No. 1," World Bank Other Operational Studies 2906, The World Bank.
  4. World Bank, 2010. "Belarus - Industrial Performance Before and During the Global Crisis : Belarus Economic Policy Notes - Note No. 3," World Bank Other Operational Studies 2907, The World Bank.
  5. Pradeep Mitra & Marcelo Selowsky & Juan Zalduendo, 2010. "Turmoil at Twenty : Recession, Recovery, and Reform in Central and Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 2682.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4819. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.