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The size of the firm in a transitional economy: Downsizing and economies of scale: The case of Russian footwear


  • Rinaldi, Gustavo


Did Russian reforms alter the privileged position enjoyed in Soviet times by large firms? This paper considers the size of firms in one industry (footwear) during the years 1992-2000 and its relation to productivity. Soviet footwear firms were much larger than their foreign counterparts. With the transition to a market-based economy these large firms might lose their advantage relative to smaller firms. This study finds that while firms in each size category in this industry did substantially downsize, this process did not significantly affect relative productivities. It does not appear that larger firms created in Soviet times were relatively disadvantaged.

Suggested Citation

  • Rinaldi, Gustavo, 2008. "The size of the firm in a transitional economy: Downsizing and economies of scale: The case of Russian footwear," Economic Systems, Elsevier, vol. 32(4), pages 389-409, December.
  • Handle: RePEc:eee:ecosys:v:32:y:2008:i:4:p:389-409

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    References listed on IDEAS

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    8. Doi, Noriyuki & Cowling, Marc, 1998. "The Evolution of Firm Size and Employment Share Distribution in Japanese and UK Manufacturing: A Study of Small Business Presence," Small Business Economics, Springer, vol. 10(3), pages 283-292, May.
    9. Saul Estrin & Alan A. Bevan & Boris Kuznetsov & Mark E. Schaffer & Manuela Angelucci & Julian Fennema & Giovanni Mangiarotti, 2001. "The Determinants of Privatised Enterprise Performance in Russia," William Davidson Institute Working Papers Series 452, William Davidson Institute at the University of Michigan.
    10. Rama, Martin, 1999. "Public Sector Downsizing: An Introduction," World Bank Economic Review, World Bank Group, vol. 13(1), pages 1-22, January.
    11. Carlin, Wendy & Fries, Steven & Schaffer, Mark E & Seabright, Paul, 2001. "Competition and Enterprise Performance in Transition Economies: Evidence from a Cross-country Survey," CEPR Discussion Papers 2840, C.E.P.R. Discussion Papers.
    12. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
    13. Gustavo Rinaldi, 2008. "The disadvantage of entrants: did transition eliminate it? The case of the Russian footwear industry (1992–2000)," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(1), pages 105-128, March.
    14. Katz, Katarina, 1999. "Were there no returns to education in the USSR? Estimates from Soviet-period household data," Labour Economics, Elsevier, vol. 6(3), pages 417-434, September.
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