The early stages of reform in Polish manufacturing

Luca Barbone, Domenico J. Marchetti and Stefano Paternostro

The Economics of Transition, 1999, vol. 7, issue 1, 157-177

Abstract: This paper argues that a significant adjustment process has taken place in Polish industry in the early stages of the market‐oriented reforms. We analyse comprehensive data on two‐digit and three‐digit manufacturing industries, disaggregated by firm ownership and size. By focusing on a decomposition of labour productivity growth, we obtain results which suggest that structural determinants of the recovery have outweighed cyclical ones. With regard to firm ownership and economic performance, we find that the productive response of state enterprises has been markedly different from that of private firms, with the latter outperforming the former. Finally, our results indicate that size matters, at least among private firms, and our results provide mild evidence of increasing returns. JEL classification: D21, E63, P21.

Date: 1999
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