IDEAS home Printed from
   My bibliography  Save this paper

Structural challenges for SOEs in Belarus : a case study of the machine building sector


  • Favaro, Edgardo
  • Smits, Karlis
  • Bakanova, Marina


Are Belarus's state owned enterprises positioned to grow in 2011-2015 as successfully as in 1995-2006? State owned enterprises account for 55 percent of Belarus's output and two-thirds of overall employment; economic growth in 1995-2006 was the result of capacity expansion and productivity improvements in state owned enterprises. These sources of economic growth originated in policy decisions that preserved the functioning of the command and control economy and allowed the country to exploit preferential commercial access to the Russian market in several goods and services. Are the same reasons likely to facilitate the performance of state owned enterprises and overall economic growth in 2011-2015? This paper concludes that this is not likely to happen. Times have changed: the slowdown in production and exports in 2009-2010 was unquestionably associated with a transitory decline in demand for durable goods in Russia. But there have also been more permanent market forces at work: a steady increase in competition in Russia and other Commonwealth of Independent States markets resulting from low-price Chinese and Russian-produced capital goods; and a shift in demand from low-quality/low price to high-quality, high-price transport equipment demand in Russia and other Commonwealth of Independent States markets. And these forces are there to stay. This conclusion leads to the following questions: Would state owned enterprises be able to adapt to observed market changes? What reforms would be relevant to facilitate the necessary adaptation?

Suggested Citation

  • Favaro, Edgardo & Smits, Karlis & Bakanova, Marina, 2012. "Structural challenges for SOEs in Belarus : a case study of the machine building sector," Policy Research Working Paper Series 6010, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6010

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. David Tarr & Natalya Volchkova, 2017. "Russian Trade and Foreign Direct Investment Policy at the Crossroads," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 15, pages 337-360, World Scientific Publishing Co. Pte. Ltd..
    2. Marina Bakanova, & Saul Estrin & Igor Pelipas & Sergei Pukovic, 2006. "Enterprise Restructuring in Belarus," William Davidson Institute Working Papers Series 823, William Davidson Institute at the University of Michigan.
    3. World Bank, 2010. "Belarus - Industrial Performance Before and During the Global Crisis : Belarus Economic Policy Notes : Note No. 2," World Bank Publications - Reports 2908, The World Bank Group.
    4. Bakanova, Marina & Estrin, Saul & Pelipas, Igor & Pukovich, Sergei, 2006. "Enterprise Restructuring in Belarus," IZA Discussion Papers 2148, Institute of Labor Economics (IZA).
    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.

    Cited by:

    1. Dzmitry Kruk & Kateryna Bornukova, 2013. "Belarusian Economic Growth Decomposition," BEROC Working Paper Series 24, Belarusian Economic Research and Outreach Center (BEROC).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Nebojsa Stojcic, 2012. "Patterns And Determinants Of Enterprise Restructuring In Central And East European Countries," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 21(2), pages 429-456, december.
    3. Csaba Weiner, 2011. "Foreign Direct Investments in Russia and the Hungarian-Based Investors," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 104-115.
    4. repec:aia:aiaswp:wp96 is not listed on IDEAS
    5. Dzmitry Kruk, 2011. "The Impact of Directed Lending on Long-run Growth in Belarus," BEROC Working Paper Series 14, Belarusian Economic Research and Outreach Center (BEROC).
    6. Alexander Plekhanov & Asel Isakova, 2012. "Customs Union and Kazakhstan's Imports," CASE Network Studies and Analyses 442, CASE-Center for Social and Economic Research.
    7. Amat Adarov & Kateryna Bornukova & Rumen Dobrinsky & Peter Havlik & Gabor Hunya & Dzmitry Kruk & Olga Pindyuk, 2016. "The Belarus Economy: The Challenges of Stalled Reforms," wiiw Research Reports 413, The Vienna Institute for International Economic Studies, wiiw.
    8. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Publications - Reports 13052, The World Bank Group.
    9. Luigi Bonatti & Kiryl Haiduk, 2014. "Dualism and growth in transition economies: a two-sector model with efficient and subsidised enterprises," Post-Communist Economies, Taylor & Francis Journals, vol. 26(1), pages 1-16, March.

    More about this item


    Markets and Market Access; Transport Economics Policy&Planning; Debt Markets; Economic Theory&Research; E-Business;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6010. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.