How Efficient are Firms in Transition Countries? Firm-Level Evidence from Bulgaria and Romania

Posted: 14 May 1998

See all articles by Alexandre Repkine

Alexandre Repkine

Konkuk University - Department of Economics

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: 1998

Abstract

Stochastic frontier production functions are estimated for Bulgarian (1993-95) and Romanian (1994-95) manufacturing industries using firm-level panel data. The technical efficiency of firms is found to vary significantly both within and across industrial sectors in each country. We find strong evidence of a positive relationship between firm technical efficiency levels and their profitability, which suggests the reforms have succeeded in creating hard budget constraints. The relationship between firm efficiency and size is also found to be positive, suggesting big industrial firms in the former planned economies are not necessarily inefficient.

Keywords: transition economies, technical efficiency, firm-level evidence

JEL Classification: C23, C52, D24, L0

Suggested Citation

Repkine, Alexandre and Konings, Jozef, How Efficient are Firms in Transition Countries? Firm-Level Evidence from Bulgaria and Romania (1998). CEPR Discussion Paper, No. 1839, 1998, Available at SSRN: https://ssrn.com/abstract=87408

Alexandre Repkine (Contact Author)

Konkuk University - Department of Economics ( email )

1 Hwayang-dong
Kwangjin-gu
Seoul 143-701
Korea

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie ( email )

Waaistraat 6 - box 3511
Leuven, 3000
Belgium
+32 16 326 589 (Phone)
+32 16 326 599 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
787
PlumX Metrics