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Enterprise Restructuring in Belarus

Author

Listed:
  • Marina Bakanova,
  • Saul Estrin
  • Igor Pelipas
  • Sergei Pukovic

Abstract

We explore the impact of privatization and the entry of new firms on enterprise performance in Belarus, a transition economy in which reform and market-orientated institutional development has been limited. We hypothesize that private ownership will enhance company performance, measured in a variety of ways including profitability and capacity to export to the West, and that newly created firms will perform better than state-owned ones. Our work is based on a large enterprise level survey which includes state-owned firms, privatized companies and newly created enterprises. The data refute both hypotheses. We conclude that this is probably because the institutional environment has not evolved sufficiently from the socialist era to permit free competition and effective governance by new owners.

Suggested Citation

  • 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.
  • Handle: RePEc:wdi:papers:2006-823
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Enterprise restructuring; privatization; transition; Belarus;
    All these keywords.

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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