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The Factors behind the Rise and Decline of Denovo, Privatised and State-Owned Enterprises in Belarus, Russia and the Ukraien: Using Evidence from Licos Panel Surveys 1989-1996

Obiettivo



Research objectives and content

Objective: Training towards the development of a methodology that analyses the determinants of firm performance in DeNovo, Privatised and State Owned Enterprises and their impact on the transition process in Belarus, Russia and the Ukraine.

Content: Isolating the factors behind the rise and decline of firms in restructuring economies is essential to understanding the transition process. We intend to perform a micro-economic analysis of the determinants of firm performance in the restructuring economies of Belarus, Russia and the Ukraine, with particular focus on the role played by the impact of macroeconomic versus microeconomic factors by type of firm ownership. Access to the LICOS panel survey of firms in these countries allows us to test established models of firm behaviour for transition economies and to compare these results with firm behaviour in established market economies. Using appropriate panel data estimation techniques, we propose to test the relationship between firm growth and size\age characteristics across different types of ownership. In addition, the response of heterogeneous firms to various policy measures and their impact on performance can be investigated. Firm performance is also co-determined by macro and sector level characteristics. We analyse the impact of the above on various firm performance indicators including the growth of output, sales, and employment. This methodology as applied to CIS economies in transition is unique in its ability to control for different types of enterprises incorporating both pre-transition and De Novo firms, a fact found to be of paramount importance in studies of transition for Central European countries.

Training content (objective, benefit and expected impact)

Objective: LICOS is an unique research centre that focuses on high quality research and training in the field of the microeconomic analysis of transition economies, in particular, Industrial Restructuring and Western and Central and East European Linkages. Training will involve the ability to manage and analyse large amounts of survey data with state of the art empirical techniques. LICOS has unique micro databases, a specialist library and hosts many seminars on transition economics Issues.

Benefit and Impact. We anticipate that the determinants of firm performance in CIS countries will be very different from those found in similar studies on CEE countries. Macro-economic and sector specific effects may play a greater role in the CIS. The results on factors behind the rise and decline of DeNovo, Privatised and State Owned Enterprises over the period 1989-1996 will provide useful information on the role of ownership in the restructuring process in CIS countries. The results will provide interesting information to the Community. The success of the restructuring process will determine to a great extent whether we can expect a pick up and more diversity in exports and FDI flows to countries of the CIS.

Links with industry / industrial relevance (22)

An understanding of the factors determining firm performance and their impact on the restructuring process is extremely important to policy makers as well as for investors looking to expand into the CIS markets. This microeconomic analysis of transition and structural change provides valuable lessons for both governments and business. The results will be made available in LICOS discussion papers and distributed in the usual manner.

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Coordinatore

KATHOLIEKE UNIVERSITEIT LEUVEN
Contributo UE
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Indirizzo
34,Deberiotstraat 34
3000 LOUVAIN / LEUVEN
Belgio

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