Disorganisation in the Transition Process: Firm Level Evidence from Ukraine

Jozef Konings and Patrick Paul Walsh ()

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: Most post-communist economies are characterized by an initial collapse in aggregate output. Blanchard and Kremer (1997) and Roland and Verdier (1997) have recently modelled supply side distortions, disorganization in the links of production, that can lead to a short-term output contraction after market liberalisation and a recovery thereafter. This paper is the first to illustrate and test the effects of disorganization in the transition process by using a unique data set of 300 Ukrainian firms. Our results show that for firms that existed under central planning disorganization constrains employment and productivity growth during the transition process to a market economy. In contrast, disorganization plays no role in the determination of employment and productivity growth in newly established private firms.

Keywords: disorganization; transition process; de novo firms (search for similar items in EconPapers)
JEL-codes: D0 O0 P0 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1998-05-01
New Economics Papers: this item is included in nep-cis, nep-ent and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://www.econ.kuleuven.be/licos/publications/dp/dp71.pdf

Related works:
Working Paper: Disorganization in the Transition Process: Firm-Level Evidence from Ukraine (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:7198

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