Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001
The Slovenian transition represents a slow, but steady liberalization of constraints on competition. Using a unique longitudinal data set on all manufacturing firms in Slovenia over the period 1994-2001, the authors analyze how firm efficiency chan...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/01/2877545/market-pressures-induce-economic-efficiency-case-slovenian-manufacturing-1994-2001 http://hdl.handle.net/10986/13900 |
| id |
okr-10986-13900 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-139002021-04-23T14:03:20Z Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 Orazem, Peter F. Vodopivec, Milan ADVERSE CONSEQUENCES BANKRUPTCY BARRIERS TO ENTRY CENTRAL PLANNING COMPANY DEFLATORS DEREGULATION ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMISTS EMPIRICAL EVIDENCE ENTREPRENEURSHIP EXPANSION EXPORTS FINANCIAL INSTITUTIONS FINANCIAL SECTOR FIRM SIZE FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT GDP GROWTH RATE IMPORTS INCOME INTERNATIONAL TRADE LABOR MARKETS LABOR PRODUCTIVITY MACROECONOMIC PERFORMANCE MARKET COMPETITION MARKET ENTRY MIXED ENTERPRISES MONOPOLIES MUTUAL FUND OWNERSHIP STRUCTURE PER CAPITA INCOME PLANNED ECONOMIES PLANNED ECONOMY POTENTIAL INVESTORS PRODUCT MARKETS PRODUCTION FUNCTION PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZING FIRMS PROPERTY RIGHTS REGRESSION ANALYSIS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES SURPLUS LABOR TECHNOLOGY ADOPTION TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSITION ECONOMIES UNEMPLOYMENT WAGES MARKET PROJECTIONS MARKET COMPETITION ECONOMIC EQUILIBRIUM CASE STUDIES TRANSITION ECONOMIES ECONOMIC LIBERALIZATION MANUFACTURING ENTERPRISES ENTERPRISE DEVELOPMENT COMPETITIVENESS TOTAL FACTOR PRODUCTIVITY GROWTH PATTERNS INDUSTRIALIZED SOCIETIES INDUSTRIAL DEVELOPMENT FOREIGN OWNERSHIP INTERNATIONAL TRADE The Slovenian transition represents a slow, but steady liberalization of constraints on competition. Using a unique longitudinal data set on all manufacturing firms in Slovenia over the period 1994-2001, the authors analyze how firm efficiency changed, in response to changing competitive pressures, holding constant firm attributes. Results show that the period was one of atypically rapid growth of total factor productivity (TFP), relative to levels in OECD countries, and that the rise in firm efficiency occurs across almost all industries and firm types - large or small, state or private, and domestic or foreign-owned. Changes in firm ownership type, have no impact on firm efficiency. Rather, competitive pressures that sort out inefficient firms of all types, and retain the most efficient, coupled with the entry of new private firms that are at least as efficient as surviving firms, prove to be the major source of TFP gains. Market competition from new entrants, foreign-owned firms, and international trade, also raise firm efficiency in the industry. Results strongly confirm that market competition fosters efficiency. 2013-06-13T15:32:13Z 2013-06-13T15:32:13Z 2004-01 http://documents.worldbank.org/curated/en/2004/01/2877545/market-pressures-induce-economic-efficiency-case-slovenian-manufacturing-1994-2001 http://hdl.handle.net/10986/13900 English en_US Policy, Research working paper;no. WPS 3189 Policy Research Working Paper;No. 3189 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Slovenia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERSE CONSEQUENCES BANKRUPTCY BARRIERS TO ENTRY CENTRAL PLANNING COMPANY DEFLATORS DEREGULATION ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMISTS EMPIRICAL EVIDENCE ENTREPRENEURSHIP EXPANSION EXPORTS FINANCIAL INSTITUTIONS FINANCIAL SECTOR FIRM SIZE FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT GDP GROWTH RATE IMPORTS INCOME INTERNATIONAL TRADE LABOR MARKETS LABOR PRODUCTIVITY MACROECONOMIC PERFORMANCE MARKET COMPETITION MARKET ENTRY MIXED ENTERPRISES MONOPOLIES MUTUAL FUND OWNERSHIP STRUCTURE PER CAPITA INCOME PLANNED ECONOMIES PLANNED ECONOMY POTENTIAL INVESTORS PRODUCT MARKETS PRODUCTION FUNCTION PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZING FIRMS PROPERTY RIGHTS REGRESSION ANALYSIS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES SURPLUS LABOR TECHNOLOGY ADOPTION TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSITION ECONOMIES UNEMPLOYMENT WAGES MARKET PROJECTIONS MARKET COMPETITION ECONOMIC EQUILIBRIUM CASE STUDIES TRANSITION ECONOMIES ECONOMIC LIBERALIZATION MANUFACTURING ENTERPRISES ENTERPRISE DEVELOPMENT COMPETITIVENESS TOTAL FACTOR PRODUCTIVITY GROWTH PATTERNS INDUSTRIALIZED SOCIETIES INDUSTRIAL DEVELOPMENT FOREIGN OWNERSHIP INTERNATIONAL TRADE |
| spellingShingle |
ADVERSE CONSEQUENCES BANKRUPTCY BARRIERS TO ENTRY CENTRAL PLANNING COMPANY DEFLATORS DEREGULATION ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMISTS EMPIRICAL EVIDENCE ENTREPRENEURSHIP EXPANSION EXPORTS FINANCIAL INSTITUTIONS FINANCIAL SECTOR FIRM SIZE FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT GDP GROWTH RATE IMPORTS INCOME INTERNATIONAL TRADE LABOR MARKETS LABOR PRODUCTIVITY MACROECONOMIC PERFORMANCE MARKET COMPETITION MARKET ENTRY MIXED ENTERPRISES MONOPOLIES MUTUAL FUND OWNERSHIP STRUCTURE PER CAPITA INCOME PLANNED ECONOMIES PLANNED ECONOMY POTENTIAL INVESTORS PRODUCT MARKETS PRODUCTION FUNCTION PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZING FIRMS PROPERTY RIGHTS REGRESSION ANALYSIS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES SURPLUS LABOR TECHNOLOGY ADOPTION TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRANSITION ECONOMIES UNEMPLOYMENT WAGES MARKET PROJECTIONS MARKET COMPETITION ECONOMIC EQUILIBRIUM CASE STUDIES TRANSITION ECONOMIES ECONOMIC LIBERALIZATION MANUFACTURING ENTERPRISES ENTERPRISE DEVELOPMENT COMPETITIVENESS TOTAL FACTOR PRODUCTIVITY GROWTH PATTERNS INDUSTRIALIZED SOCIETIES INDUSTRIAL DEVELOPMENT FOREIGN OWNERSHIP INTERNATIONAL TRADE Orazem, Peter F. Vodopivec, Milan Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 |
| geographic_facet |
Europe and Central Asia Slovenia |
| relation |
Policy, Research working paper;no. WPS 3189 |
| description |
The Slovenian transition represents a
slow, but steady liberalization of constraints on
competition. Using a unique longitudinal data set on all
manufacturing firms in Slovenia over the period 1994-2001,
the authors analyze how firm efficiency changed, in response
to changing competitive pressures, holding constant firm
attributes. Results show that the period was one of
atypically rapid growth of total factor productivity (TFP),
relative to levels in OECD countries, and that the rise in
firm efficiency occurs across almost all industries and firm
types - large or small, state or private, and domestic or
foreign-owned. Changes in firm ownership type, have no
impact on firm efficiency. Rather, competitive pressures
that sort out inefficient firms of all types, and retain the
most efficient, coupled with the entry of new private firms
that are at least as efficient as surviving firms, prove to
be the major source of TFP gains. Market competition from
new entrants, foreign-owned firms, and international trade,
also raise firm efficiency in the industry. Results strongly
confirm that market competition fosters efficiency. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Orazem, Peter F. Vodopivec, Milan |
| author_facet |
Orazem, Peter F. Vodopivec, Milan |
| author_sort |
Orazem, Peter F. |
| title |
Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 |
| title_short |
Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 |
| title_full |
Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 |
| title_fullStr |
Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 |
| title_full_unstemmed |
Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994-2001 |
| title_sort |
do market pressures induce economic efficiency? the case of slovenian manufacturing, 1994-2001 |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/01/2877545/market-pressures-induce-economic-efficiency-case-slovenian-manufacturing-1994-2001 http://hdl.handle.net/10986/13900 |
| _version_ |
1764429863241908224 |