Arbeitspapier
Economic Reforms and Productivity-Enhancing Reallocation in the Post-Soviet Transition
How do economic reforms affect resource reallocation processes and their contributions to productivity growth? This paper studies the consequences of enterprise privatization and liberalization of product markets, labor markets, and imports in the former Soviet Republics of Russia and Ukraine. Analyzing interfirm reallocation of output, labor, capital, and an input index with annual industrial census data from 1985 to 2001, we find that Soviet Russia displayed low reallocation rates that bore little relationship to relative labor and multifactor productivity across firms. Since reforms began, resource flows have increased in both countries, and their contributions to aggregate productivity growth have become substantial both through increased flows from less productive to more productive continuing firms and through higher exits of less productive entities – i.e., through creative destruction. Among the policy-relevant factors that may explain firm-level variation, privatization is estimated to have positive effects on productivity-enhancing reallocation, but there is less evidence of such effects from domestic product market competition, labor market competition, or import penetration.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 1044
- Classification
-
Wirtschaft
Labor Turnover; Vacancies; Layoffs
Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- Subject
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job creation
creative destruction
reallocation
productivity
Russia
Ukraine
Systemtransformation
Privatisierung
Deregulierung
Allokation
Produktivität
Übergangswirtschaft
Schätzung
Russland
Ukraine
- Event
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Geistige Schöpfung
- (who)
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Brown, J. David
Earle, John S.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Brown, J. David
- Earle, John S.
- Institute for the Study of Labor (IZA)
Time of origin
- 2004
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Aleksandr Prokhanov and post-Soviet esotericism
Post-Soviet management: Evidence from Kazakhstan
10. Post-Soviet Organized Crime and the Soviet Successor States
The Colour Revolutions in the Post-Soviet Space: Illusion and Reality of the Post-Soviet Civil Disobedience