How transition paths differ: Enterprise performance in Russia and China

Abstract

We use enterprise survey 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, and with ownership to a lesser extent, but not greatly correlated with industry-specific or institutional factors. However, in Russia, enterprise growth is not associated with improvements in factor quantity (except for labor) or quality. The main determinants of company performance are instead demand and institutional factors at a regional level. The findings are robust across a variety of specifications.

Does Institutional Quality Affect Firm Performance? Insights from a Semi-Parametric Approach

“…In Table 2, therefore, we report the distributions of the aforementioned estimates. 4 The coefficient estimates suggest that the returns to scale for the median firm is 1.00, which is consistent with our expectations about returns to scale of mature industries. The estimates also indicate that the median marginal contribution of capital to the output firm is less than those of labor and material inputs, which is consistent with selective evidence about significant investment in physical capital -specifically, power looms -in textiles industries in developing countries (Bhaumik et al, 2008).…”

“…Bhaumik and Estrin (2007), for example, model output (or sales) as a function of firm-specific characteristics such as factor inputs and ownership, as well as institutional (and economic) characteristics of the regions in which the firms are located. In other words, output of the i th firm is given by…”

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The co-integration analysis of relationship between industrial economy and gross national product of China

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