Firm growth and productivity in Belarus : new empirical evidence from the machine building industry, Vol. 1 of 1

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

Author:	Cuaresma, Jesus Crespo; Oberhofer, Harald; Vincelette, Gallina A.;	Collection Title:	Policy Research working paper ; no. WPS 6005
Country:	Belarus;	Date Stored:	2012/03/20
Document Date:	2012/03/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	Europe and Central Asia
Report Number:	WPS6005	SubTopics:	Economic Theory & Research; Microfinance; Labor Policies; Economic Growth; Labor Markets
Volume No:	1 of 1

Summary: 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.


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