Institutional reforms, productivity and profitability: From rents to competition?

Nigel Driffield, Tomasz Mickiewicz and Yama Temouri

Journal of Comparative Economics, 2013, vol. 41, issue 2, 583-600

Abstract: This paper explores the divergent effects of institutional reforms on firm’s productivity and profits. To assess this empirically, we investigate the impact of various components of economic liberalisation on the performance of firms from Central and Eastern European countries from 1998 to 2006. The impact of reforms on profitability vis-à-vis productivity differs, which we interpret as an indication that profitability is an ambiguous measure of performance: one needs to distinguish between unproductive rents and productivity-based quasi-rents. We find that competition-enhancing liberalisation measures have more impact on state owned firms as compared with domestic and foreign owned firms.

Keywords: Institutions; FDI; Privatisation; Productivity; Profits (search for similar items in EconPapers)
JEL-codes: C23 F23 P31 P33 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:41:y:2013:i:2:p:583-600

DOI: 10.1016/j.jce.2012.08.001

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