Working Paper: CEPR ID: DP4937
Authors: Sumon Kumar Bhaumik; Saul Estrin
Abstract: We use enterprise 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, but not correlated with ownership or institutional factors. However, in Russia, enterprise growth is not associated with increases in factor quantity (except for labour) or quality. The main determinants of company performance are instead demand and institutional factors at a regional level. We explore possible interpretations of these results, including the impact of institutional and managerial quality.
Keywords: enterprise performance; privatization; Russia; China
JEL Codes: D23; L22; O12; P31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increases in factor inputs (E23) | Improved enterprise performance in China (L25) |
| Demand and institutional factors (J23) | Enterprise growth in Russia (O49) |
| Ownership structure does not significantly affect performance in Russia (G32) | Enterprise success in Russia (P12) |
| Rapid increases in factor inputs (D25) | Enterprise growth in China (O49) |
| Privatization to outsiders does not enhance performance relative to insider-owned firms (L33) | Enterprise performance in Russia (L25) |
| Labor increases (J39) | Enterprise growth in Russia (O49) |