Productivity, Ownership and the Investment Climate: International Lessons for Priorities in Serbia

20 Pages Posted: 23 Aug 2005

See all articles by Itzhak Goldberg

Itzhak Goldberg

CASE - Center for Social and Economic Research; Fraunhofer Center for Central and Eastern Europe

Branko Radulovic

Faculty of Law, Department of Economics, University of Belgrade

Mark E. Schaffer

Heriot-Watt University - Centre for Economic Reform and Transformation; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: August 2005

Abstract

This paper uses data on 27,000 firms from 50 countries, half of which are transition economies, together with the specific case of Serbia to examine the relationship between productivity, the investment climate and private ownership of firms. As government capacity to address the investment climate constraints is limited, the prioritization of the constraints is critical. Identification of the relative effects of various investment climate constraints and ownership on productivity should serve as a guide for such prioritization. Although ownership has recently received less attention in policy decisions than previously, according to the econometric analysis of productivity reported in the paper, private ownership is an equally or more important determinant of productivity than other components of the investment climate. The importance of ownership shows that an unfinished privatization and restructuring agenda might have negative effects on productivity, in parallel to poor investment climate. Another important finding is that countries in which firms complain more about infrastructure tend to have less productive firms.

Suggested Citation

Goldberg, Itzhak and Radulovic, Branko LJ. and Schaffer, Mark E., Productivity, Ownership and the Investment Climate: International Lessons for Priorities in Serbia (August 2005). World Bank Policy Research Working Paper No. 3681, Available at SSRN: https://ssrn.com/abstract=786526

Itzhak Goldberg (Contact Author)

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Fraunhofer Center for Central and Eastern Europe ( email )

Germany

Branko LJ. Radulovic

Faculty of Law, Department of Economics, University of Belgrade ( email )

Bulevar Kralja Aleksandra 67
Belgrade, 110000
Serbia

HOME PAGE: http://www.ius.bg.ac.rs/prof/personal.asp?sifra=RADBRA

Mark E. Schaffer

Heriot-Watt University - Centre for Economic Reform and Transformation ( email )

School of Management - Department of Economics
Edinburgh EH14 4AS
United Kingdom
+44 131 451 3494 (Phone)
+44 131 451 3008 (Fax)

HOME PAGE: http://www.hw.ac.uk/ecoWWW/cert

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
187
Abstract Views
1,322
rank
193,508
PlumX Metrics