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

Jesus Crespo Cuaresma, Harald Oberhofer and Gallina Andronova Vincelette

Journal of Comparative Economics, 2014, vol. 42, issue 3, 726-738

Abstract: Using a unique dataset comprising information for (up to) 153 firms in the machine building sector in Belarus, we investigate the determinants of firm growth for an economy where state ownership of enterprises is widespread. We use 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-controlled firms. Our 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.

Keywords: Firm growth; Total factor productivity; State-owned enterprises; Soft budget constraints (search for similar items in EconPapers)
JEL-codes: L25 L32 P31 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Firm growth and productivity in Belarus: New empirical evidence from the machine building industry (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:42:y:2014:i:3:p:726-738

DOI: 10.1016/j.jce.2013.07.004

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