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Why Transition Paths Differ: Russian and Chinese Enterprise Performance Compared

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  • Sumon Bhaumik

    ()

  • Saul Estrin

    ()

Abstract

We use enterprise data to analyse and compare the determinants of enterprise performance in China and Russia. We find that in China, enterprise growth and efficiency is associated with rapid increases in factor inputs including management, as well as TFP, but not greatly associated with ownership or institutional factors. In contrast, sales growth in Russia is not associated with improvements in factor quantity (except for labor) or quality; TFP is not influenced by competition and privatization to outsiders does not enhance company performance relative to insider ownership. The main determinants of TFP are instead demand and institutional factors at a regional level.

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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 525.

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Length: 29 pages
Date of creation: 01 Jan 2003
Date of revision:
Handle: RePEc:wdi:papers:2003-525

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Keywords: informal enterprise performance; privatization in Russia and China; total factor productivity;

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