IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Disorganization

Author Info

Listed author(s):
  • Olivier Blanchard
  • Michael Kremer

Abstract

Under central planning, many firms relied on a single supplier for critical inputs. Transition has led to decentralized bargaining between suppliers and buyers. Under incomplete contracts or asymmetric information, bargaining may inefficiently break down, and if chains of production link many specialized producers, output will decline sharply. Mechanisms that mitigate these problems in the West, such as reputation, can only play a limited role in transition. The empirical evidence suggests that output has fallen farthest for the goods with the most complex production process, and that disorganization has been more important in the former Soviet Union than in Central Europe.

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://hdl.handle.net/10.1162/003355300555439
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Oxford University Press in its journal The Quarterly Journal of Economics.

Volume (Year): 112 (1997)
Issue (Month): 4 ()
Pages: 1091-1126

as
in new window

Handle: RePEc:oup:qjecon:v:112:y:1997:i:4:p:1091-1126.
Contact details of provider:

Keywords:

Other versions of this item:

Find related papers by JEL classification:
  • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
  • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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. Elise S. Brezis & Adi Schnytzer, 2003. "Wy are the transition paths in China and Eastern Europe different?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 3-23, March.
  2. Saul Estrin, 2002. "Competition and Corporate Governance in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 101-124, Winter.
  3. Saul Estrin & Svetlana Poukliakova & Daniel Shapiro, 2009. "The Performance Effects of Business Groups in Russia," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 393-420, 05.
  4. 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.
  5. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 569-600.
  6. W. Bentley MacLeod, 2007. "Reputations, Relationships, and Contract Enforcement," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 595-628, September.
  7. Jonathan Isham & Daniel Kaufmann, 1999. "The Forgotten Rationale for Policy Reform: The Productivity of Investment Projects," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 149-184.
  8. Karla Hoff & Joseph E. Stiglitz, 2004. "After the Big Bang? Obstacles to the Emergence of the Rule of Law in Post-Communist Societies," American Economic Review, American Economic Association, vol. 94(3), pages 753-763, June.
  9. Christian Volpe Martincus & Andrés Gallo, 2009. "Institutions and Export Specialization: Just Direct Effects?," Kyklos, Wiley Blackwell, vol. 62(1), pages 129-149, 02.
  10. Bat Batjargal, 2007. "Network triads: transitivity, referral and venture capital decisions in China and Russia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 998-1012, November.
  11. Jiahua Che, 2009. "A Dynamic Model of Privatization with Endogenous Post-Privatization Performance," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 563-596.
  12. Serguey Braguinsky & Roger Myerson, 2007. "A macroeconomic model of Russian transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(1), pages 77-107, 03.
  13. Martin Wagner & Jaroslava Hlouskova, 2005. "CEEC growth projections: Certainly necessary and necessarily uncertain," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(2), pages 341-372, 04.
  14. Vasco Molini & Guanghua Wan, 2008. "Discovering sources of inequality in transition economies: a case study of rural Vietnam," Economic Change and Restructuring, Springer, vol. 41(1), pages 75-96, March.
  15. Sonya Kostova Huffman & Stanley R. Johnson, 2004. "Impacts of Economic Reform in Poland: Incidence and Welfare Changes Within a Consistent Framework," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 626-636, May.
  16. J. B. Rosser-Jr. & M. Rosser., 2009. "A Critique of the New Comparative Economics," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
  17. David Martimort & Philippe De Donder & Etienne Billette de Villemeur, 2005. "An Incomplete Contract Perspective on Public Good Provision," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 149-180, 04.
  18. Vladimir Popov, 2007. "Shock Therapy versus Gradualism Reconsidered: Lessons from Transition Economies after 15 Years of Reforms1," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(1), pages 1-31, March.
  19. Andrei A. Levchenko, 2007. "Institutional Quality and International Trade," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 791-819.
  20. Saul Estrin, 2003. "Measuring the Impact of Russian Privatisation at the Turn of the Century: An Introduction to the Symposium," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 45(2), pages 109-116, June.
  21. Sergei Guriev & Andrei Rachinsky, 2005. "The Role of Oligarchs in Russian Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 131-150, Winter.
  22. Micael Castanheira, 2003. "Public finance and the optimal speed of transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 435-462, 09.
  23. Natalia Merkina, 2009. "Technological catch-up or resource rents?," International Economics and Economic Policy, Springer, vol. 6(1), pages 59-82, June.
  24. Alan A Bevan & Julian Fennema, 2003. "Finance, Restructuring and Performance in Privatised Russian Enterprises," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 45(2), pages 117-147, June.
  25. Francesco Pastore & Alina Verashchagina, 2006. "The Distribution of Wages in Belarus," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(2), pages 351-376, June.
  26. John Marangos, 2002. "A post Keynesian critique of privatization policies in transition economies," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 573-589.
  27. Ariaster B. Chimeli, 2003. "Optimal dynamics of environmental quality in economies in transition -super-1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 123-152, March.
  28. Pavlo Demchuk & Valentin Zelenyuk, 2009. "Testing differences in efficiency of regions within a country: the case of Ukraine," Journal of Productivity Analysis, Springer, vol. 32(2), pages 81-102, October.
  29. Oleg Badunenko & Daniel J. Henderson & Valentin Zelenyuk, 2008. "Technological Change and Transition: Relative Contributions to Worldwide Growth During the 1990s," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(4), pages 461-492, 08.
  30. repec:hrv:faseco:33078568 is not listed on IDEAS
  31. Michael Ellman, 2005. "Transition: Intended and Unintended Processes," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 47(4), pages 595-614, December.
  32. Bat Batjargal, 2007. "Comparative Social Capital: Networks of Entrepreneurs and Venture Capitalists in China and Russia," Management and Organization Review, The International Association for Chinese Management Research, vol. 3(3), pages 397-419, November.
  33. Andrei Shleifer & Daniel Treisman, 2005. "A Normal Country: Russia After Communism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 151-174, Winter.
  34. Batjargal, Bat, 2007. "Comparative Social Capital: Networks of Entrepreneurs and Venture Capitalists in China and Russia," Management and Organization Review, Cambridge University Press, vol. 3(03), pages 397-419, November.
  35. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 3-28, Winter.
  36. Marian Rizov, 2005. "Does individualization help productivity of transition agriculture?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 215-227, 09.
  37. repec:aea:jeclit:v:43:y:2005:i:3:p:721-761 is not listed on IDEAS
  38. Jozef Konings & Olga Kupets & Hartmut Lehmann, 2003. "Gross job flows in Ukraine," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(2), pages 321-356, June.
  39. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
Full references (including those not matched with items on IDEAS)

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

as
in new window


Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

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

Access and download statistics

When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:112:y:1997:i:4:p:1091-1126.. 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: (Oxford University Press)

or (Christopher F. Baum)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.