Working Paper: CEPR ID: DP3319
Authors: Simeon Djankov; Peter Murrell
Abstract: We survey the empirical literature analysing the process of enterprise restructuring in transition economies. The survey provides new insights into the relative effectiveness of different reform policies, and into how this effectiveness varies across regions. We study the effects of privatization, the importance of different types of owners, the effects of foreign and domestic competition, the consequences of soft budgets, and the role of managerial incentives and managerial human capital, on enterprise restructuring.
Keywords: competition; institutions; managers; privatization; restructuring; soft budgets; transition
JEL Codes: L10; L33; O12; P00
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Privatization (L33) | Increased enterprise restructuring (L16) |
| Ownership type (R21) | Restructuring outcomes (G33) |
| State ownership (H13) | Less effective restructuring (L19) |
| Product market competition (L13) | Improved enterprise performance (L25) |
| Hardening of budget constraints (H60) | Beneficial effect on restructuring (G32) |
| Managerial turnover (J63) | Improved performance (D29) |
| Strengthened managerial incentives (M52) | Improved performance (D29) |