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How transition paths differ: Enterprise performance in Russia and China

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  • Bhaumik, Sumon Kumar
  • Estrin, Saul

Abstract

We use enterprise data to analyse and contrast 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, but not correlated with ownership or institutional factors. However, in Russia, enterprise growth is not associated with increases in factor quantity (except for labor) or quality. The main determinants of company performance are instead demand and institutional factors at a regional level. We explore possible interpretations of these results, including the impact of institutional and managerial quality.
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  • Bhaumik, Sumon Kumar & Estrin, Saul, 2007. "How transition paths differ: Enterprise performance in Russia and China," Journal of Development Economics, Elsevier, vol. 82(2), pages 374-392, March.
  • Handle: RePEc:eee:deveco:v:82:y:2007:i:2:p:374-392
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    Cited by:

    1. Craig P. Aubuchon & Subhayu Bandyopadhyay & Sumon Bhaumik, 2012. "The extent and impact of outsourcing: evidence from Germany," Review, Federal Reserve Bank of St. Louis, issue July, pages 287-304.
    2. Sumon Kumar Bhaumik & Ralitza Dimova & Ira N. Gang, 2016. "Is Women’s Ownership of Land a Panacea in Developing Countries? Evidence from Land-Owning Farm Households in Malawi," Journal of Development Studies, Taylor & Francis Journals, vol. 52(2), pages 242-253, February.
    3. Sumon Bhaumik & Ralitza Dimova & Subal C. Kumbhakar & Kai Sun, 2012. "Does Institutional Quality Affect Firm Performance? Insights from a Semi-Parametric Approach," William Davidson Institute Working Papers Series wp1029, William Davidson Institute at the University of Michigan.
    4. Ichiro Iwasaki & Satoshi Mizobata & Alexander A. Muravyev, 2017. "Ownership Dynamics and Firm Performance in an Emerging Economy: A Meta-Analysis of the Russian Literature," KIER Working Papers 955 Classification-JD22, , Kyoto University, Institute of Economic Research.
    5. Chen, Shiyi & Jefferson, Gary H. & Zhang, Jun, 2011. "Structural change, productivity growth and industrial transformation in China," China Economic Review, Elsevier, vol. 22(1), pages 133-150, March.
    6. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9802-1 is not listed on IDEAS
    7. repec:wdi:papers:2011-1029 is not listed on IDEAS
    8. Iwasaki, Ichiro & Mizobata, Satoshi, 2017. "Post-Privatization Ownership and Firm Performance: A Large Meta-Analysis of the Transition Literature," CEI Working Paper Series 2016-13, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    9. Zhao, Hongxin & Lu, Jiangyong, 2016. "Contingent value of political capital in bank loan acquisition: Evidence from founder-controlled private enterprises in China," Journal of Business Venturing, Elsevier, vol. 31(2), pages 153-174.
    10. repec:spr:chfecr:v:4:y:2016:i:1:d:10.1186_s40589-016-0027-x is not listed on IDEAS
    11. Sumon Kumar Bhaumik & Shubhashis Gangopadhyay & Shagun Krishnan, 2009. "Reforms and Entry: Some Evidence from the Indian Manufacturing Sector," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 658-672, November.
    12. repec:hig:fsight:v:11:y:2017:i:3:p:83-93 is not listed on IDEAS
    13. Sumon Kumar Bhaumik & Shubhashis Gangopadhyay & Shagun Krishnan, 2006. "Reforms, Entry and Productivity: Some Evidence from the Indian Manufacturing Sector," William Davidson Institute Working Papers Series 822, William Davidson Institute at the University of Michigan.
    14. Wendong Shi & Jingwei Sun, 2016. "The impact of privatization on efficiency and profitability," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 393-420, July.
    15. Bat Batjargal & Bat Batjargal, 2005. "Comparative social capital: Networks of entrepreneurs and investors in China and Russia," William Davidson Institute Working Papers Series wp783, William Davidson Institute at the University of Michigan.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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