DP4937 How Transition Paths Differ: Enterprise Performance in Russia and China

Author(s): Sumon Kumar Bhaumik, Saul Estrin
Publication Date: February 2005
Keyword(s): enterprise performance, privatization in Russia and China
JEL(s): D23, L22, O12, P31
Programme Areas: Institutions and Economic Performance
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=4937

We use enterprise data to analyse and contrast the determinants of enterprise performance in China and Russia. We find that in China, enterprise growth and efficiency is associated with rapid increases in factor inputs, but not correlated with ownership or institutional factors. However, in Russia, enterprise growth is not associated with increases in factor quantity (except for labour) or quality. The main determinants of company performance are instead demand and institutional factors at a regional level. We explore possible interpretations of these results, including the impact of institutional and managerial quality.