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Firm growth and productivity in Belarus : new empirical evidence from the machine building industry

Author

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  • Cuaresma, Jesus Crespo
  • Oberhofer, Harald
  • Vincelette, Gallina A.

Abstract

Using a unique dataset comprising information for more than 900 firms in the machine building sector in Belarus, this paper investigates the determinants of firm growth for an economy where state ownership of enterprises is widespread. It uses panel data models based on generalizations of Gibrat's law, total factor productivity estimates and matching methods to assess the differences in firm growth between private and state-owned firms. The results indicate that labor hoarding and soft budget constraints play a particularly important role in explaining differences in performance between these two groups of firms.

Suggested Citation

  • Cuaresma, Jesus Crespo & Oberhofer, Harald & Vincelette, Gallina A., 2012. "Firm growth and productivity in Belarus : new empirical evidence from the machine building industry," Policy Research Working Paper Series 6005, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6005
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    References listed on IDEAS

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    Cited by:

    1. Ichiro IWASAKI & Satoshi MIZOBATA, 2018. "Post-Privatization Ownership And Firm Performance: A Large Meta-Analysis Of The Transition Literature," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 263-322, June.
    2. Crespo Cuaresma, Jesus & Oberhofer, Harald & Vincelette, Gallina Andronova, 2014. "Firm growth and productivity in Belarus: New empirical evidence from the machine building industry," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 726-738.
    3. Ghosh, Saibal, 2013. "Do economic reforms matter for manufacturing productivity? Evidence from the Indian experience," Economic Modelling, Elsevier, vol. 31(C), pages 723-733.
    4. Tadesse WODAJO, Tadesse & Dawit SENBET, Dawit, 2013. "Distributions Of Public And Private Manufacturing Firms And Determinants Of Productivity In Ethiopia," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(1).

    More about this item

    Keywords

    Microfinance; Labor Policies; Economic Theory&Research; Economic Growth; Labor Markets;

    JEL classification:

    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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