Competition And Firm Performance: Lessons From Russia
J. David Brown () and
John Earle ()
No 2444, CEPR Discussion Papers from C.E.P.R. Discussion Papers
The 'big-bang' liberalization of the inefficient Russian economy in 1992 provides a fruitful setting for analysing the impact of several dimensions of market competition and other factors on enterprise efficiency. We analyse 1992-1998 panel data on 14,961 enterprises covering 75 percent of industrial employment, emphasizing the varied sources, geographic scope, intensity, time path, and survival effects of competitive pressures. We find large, positive effects on TFP from competition in domestic product and local labour markets, and from imports and better transportation infrastructure, although the first effect appears only gradually. Non-state firms outperform state enterprises, even after correction for selection bias.
Keywords: Competition; Firm Exit; Foreign Trade; Monopsony; Privatization; Russia; Total Factor Productivity (search for similar items in EconPapers)
JEL-codes: D24 D40 J42 L10 L33 P23 P31 (search for similar items in EconPapers)
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Working Paper: Competition and Firm Performance: Lessons from Russia (2000)
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