Open AccessFirm-level Inefficiency in Post-transition Economies
Author(s) -
Valerija Botrić
Publication year - 2021
Publication title -
proceedings of the entrenova - enterprise research innovation conference
Language(s) - English
Resource type - Journals
eISSN - 2706-4735
pISSN - 1849-7950
DOI - 10.54820/fksq7558
Subject(s) - inefficiency , competitor analysis , business , frontier , sample (material) , license , stochastic frontier analysis , economics , economy , market economy , production (economics) , marketing , geography , political science , chemistry , archaeology , chromatography , law , macroeconomics
Firms in post-transition economies are frequently considered less efficient than those in more advanced market economies. By relying on the World Bank Enterprise Survey for the year 2019, firm-level technical inefficiency is estimated by the stochastic frontier analysis method for a sample of European post-transition countries. To be precise, the analysis included Albania, Bosnia and Herzegovina, Croatia, Czechia, Estonia, North Macedonia, Poland, Serbia, and Slovenia. Furthermore, the factors contributing to the firm-level inefficiency are explored in a comparative setting. The effects of the international orientation of the firm, foreign ownership, doing business with the government sector, presence of informal competitors, innovation activity, manager experience, and the age of the firm on the technical inefficiency are estimated. Results show that although some factors are common to a subsample of countries, not a single factor is significant in all the analysed economies.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.