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Structural Changes in the Manufacturing Industry of Transition Economies

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  • Malinka Koparanova

Abstract

This paper addresses the pattern of structural change in selected transition and developed economies in Europe both from the point of view of a national economy and from cross-country perspective as well. It uses cross-industry country data at 2 and 3-digit level of the NACE classification to examine structural changes in the manufacturing industry in the second half of the 90’s. To asses the structural change the paper proposes a decomposition of productive efficiency into macroeconomic, or pro-cyclical component and “structural effect” component, based on two-error component model of unobservable effects. Estimation results from panel data models provided empirical evidence for a heterogeneous development pattern with dominating macroeconomic factors in many transition economies and prevailing structural factors in a few countries.

Suggested Citation

  • Malinka Koparanova, 2007. "Structural Changes in the Manufacturing Industry of Transition Economies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-42.
  • Handle: RePEc:bas:econst:y:2007:i:3:p:3-42
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    References listed on IDEAS

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    1. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
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    3. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 2000. "A Stochastic Frontier Analysis of Output Level and Growth in Poland and Western Economies," Economic Change and Restructuring, Springer, vol. 33(3), pages 185-202.
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    6. S. Fisher & R. Sahay & C. A. Vegh, 1997. "Stabilization and Growth in Transition Economies: The Early Experience," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
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    9. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    10. Philip Stevens, 2001. "The determinants of economic efficiency in English and Welsh universities," National Institute of Economic and Social Research (NIESR) Discussion Papers 185, National Institute of Economic and Social Research.
    11. Eduardo Borensztein & Dimitri G. Demekas & Jonathan D. Ostry, 1993. "An Empirical Analysis of the Output Declines in Three Eastern European Countries," IMF Staff Papers, Palgrave Macmillan, vol. 40(1), pages 1-31, March.
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    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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