Industrial Economics of the Transition: Determinants of Enterprise Efficiency in Czechoslovakia and Hungary

A Stochastic Frontier Approach to Firm Level Efficiency, Technological Change, and Productivity during the Early Transition in Hungary

“…It seems probable that the price reforms, which gathered pace in 1989, with the elimination of many consumer goods subsidies, and were largely completed by the end of 1990, are associated with the efficiency increases. Trade was also liberalized with 90% of imports exempt from licensing requirements by 1991 (see Brada et al (1997)). …”

“…Thus, the expectation is that efficiency levels will be lower in studies where value added is the dependent variable, since capital and labor are the only inputs. Thus, Brada et al (1997) fit a Cobb-Douglas stochastic frontier to Hungarian data and find high levels of inefficiency. Similarly, Jones et al's (1998) frontier study of Bulgaria finds average efficiencies of between 60 and 70% and the frontier model is always appropriate, results that are almost inevitable with only two inputs.…”

Causes of the Convergence Slowdown in the Countries of Central and Eastern Europe, 2008-2014

“…The process, as we know it, unleashed a considerable amount of previously frozen entrepreneurial energy, and started to reduce inefficiency in old publicly owned industrial structures, but this evolved in different ways in those countries because of the speed and/or nature of the economic policies adopted by them since 1990. The results were sometimes unexpectedly negative, for example in terms of the efficiency of the newly formed private companies vis-à-vis old state enterprises, both in manufacturing and in agriculture (see Brada, and King [6]; Brada, King, and Ma [7]). The second period in the CEECs' convergence process is symbolically marked by 2004, when the analyzed countries became EU members and so we define this phase the EU yield period.…”

From Social Ties to Embedded Competencies: The Case of Business Groups

“…The simplest and most commonly applied approach for 'institutionalizing solidarity' is developing a set of so-called profit redistribution rules. Such rules have been used at the interpersonal level to provide coalitions with staying-power (Simpson and Macy 2001); at the interfirm level to produce solidarity amongst alliance partners (Gedajlovic and Shapiro 2002); and at the state level to keep inefficient firms afloat (Brada et al 1997).…”