The Behavior of Russian Firms in 1992 PDF Download

Author: Simon Commander
Publisher:
ISBN:
Category :
Languages : en
Pages : 45

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Publisher: World Bank Publications
ISBN:
Category : Industrial management
Languages : en
Pages : 52

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Author: Shang-Jin Wei
Publisher:
ISBN:
Category :
Languages : en
Pages : 52

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The authors surveyed 41 firms in and around Moscow in the last two weeks of November 1992 to get an empirical handle on how firms are responding to the changing economic environment. They found the following conclusions. There were large negative (supply and demand) shocks to output for a significant number of firms and branches. Profitability was remarkably buoyant in real terms. There was clear evidence that firms with market power rapidly adjusted producer prices, trying to maintain or increase their markup. There was no evidence of a strategic change in pricing rules. Most firms experienced relative stability in earnings and in the distribution of revenues. There was no substantial evidence of decapitalization - at least through greater borrowing or predatory wage settlements. The upward shift in interfirm arrears was smaller than aggregate numbers might have led one to expect. Inertia in the wage system should not be ignored. Real wages were cut back sharply by the great price shock of January 1992, but real statistical wages then climbed back toward early 1991 levels. Benefits firms provided account for large shares of labor income and 40 to 45 percent of firms' costs. Firms may have tried to squeeze benefits particulary in housing, but allocations to the Social Fund have generally stayed constant. Employment adjustments were limited, despite the downward pressure on output and the lack of growth in firms surveyed. Net employment separations were relatively restricted. Firms continued to hire at significant rates in 1992, in part because of fixed factors technology, in part because of the reluctance of firms to discard workers. Consequently, firms have shed few workers - mostly ancillary and clerical staff, usually women; some firms chose to place workers on minimum wages, reducing labor costs significantly. The result is that unemployment benefits are provided de facto within the firms rather than through labor offices. In short the status of the so-called production worker, the core of the Russian industrial firm, remains untouched. Clearly there was a large quot;employment overhangquot; at the end of 1993. The next stage of the transition will be difficult.

Author: Susan J. Linz
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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When Russia's transition to a market-oriented economy began in 1992, detailed information about firm-level performance was not available, but there was widespread expectation that firm efficiency had to improve for the transition to succeed. Where were efficiency gains likely? Where were they needed? Did the Soviet development strategy of according high priority to firms in heavy industry give these firms an advantage during the first stage of Russia's transition to a market-oriented economy? That is, were firms in heavy industry more likely to exhibit industry best-practice production methods? Using firm-level data collected in 1992 and 1995 from Goskomstat, the state statistical agency, we estimate a stochastic frontier production function for eleven industries with inefficiency effects related to ownership, export experience, and location in Moscow. We find that in 1992 firms in priority sectors exhibited higher inefficiency than firms in non-priority sectors; by 1995, differences diminish. Our results generally support the proposition that non-state ownership improves efficiency, but the ownership effect varies by industry and over time. We reject the hypothesis that export experience increases efficiency during the initial stage of Russia's transition, and this result is especially strong in 1995. Location in Moscow proved to be an extremely positive factor, and the benefit grew over time.

Author: Nesrin Ozatac
Publisher: Springer Nature
ISBN: 303030387X
Category : Business & Economics
Languages : en
Pages : 188

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This volume presents current developments in the fields of banking and finance from an international perspective. Featuring contributions from the 4th International Conference on Banking and Finance Perspectives (ICBFP), this volume serves as a valuable forum for discussing current issues and trends in the banking and financial sectors, especially in light of the global economic challenges triggered by financial institutions. Using the latest theoretical models, new perspectives are brought to topics such as international banking and finance, Islamic banking, fintech, and corporate finance. Offering an opportunity to explore the challenges of a rapidly changing industry, this volume will be of interest to academics, policy makers, and scholars in the fields of banking, insurance, and finance.

Author:
Publisher:
ISBN: 9785900349015
Category : Russia (Federation)
Languages : en
Pages :

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Author: Maxim Boycko
Publisher: MIT Press
ISBN: 9780262522281
Category : Business & Economics
Languages : en
Pages : 180

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Privatizing Russia offers an inside look at one of the most remarkable reforms in recent history. Having started on the back burner of Russian politics in the fall of 1991, mass privatization was completed on July 1, 1994, with two thirds of the Russian industry privately owned, a rapidly rising stock market, and 40 million Russians owning company shares. The authors, all key participants in the reform effort, describe the events and the ideas driving privatization. They argue that successful reformers must recognize privatization as a process of depoliticizing firms in the face of massive opposition: making the firm responsive to market rather than political influences. The authors first review the economic theory of property rights, identifying the political influence on firms as the fundamental failure of property rights under socialism. They detail the process of coalition building and compromise that ultmately shaped privatization. The main elements of the Russian program -- corporatization, voucher use, and voucher auctions -- are described, as is the responsiveness of privatized firms to outside investors. Finally, the market values of privatized assets are assessed for indications of how much progress the country has made toward reforming its economy. In many respects, privatization has been a great success. Market concepts of property ownership and corporate management are shaking up Russian firms at a breathtaking pace, creating powerful economic and political stimuli for continuation of market reforms. At the same time, the authors caution, the political landscape remains treacherous as old-line politicians reluctantly cede their property rights and authority over firms.

Author: Karen Dawisha
Publisher: Simon and Schuster
ISBN: 1476795207
Category : Biography & Autobiography
Languages : en
Pages : 464

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The raging question in the world today is who is the real Vladimir Putin and what are his intentions. Karen Dawisha’s brilliant Putin’s Kleptocracy provides an answer, describing how Putin got to power, the cabal he brought with him, the billions they have looted, and his plan to restore the Greater Russia. Russian scholar Dawisha describes and exposes the origins of Putin’s kleptocratic regime. She presents extensive new evidence about the Putin circle’s use of public positions for personal gain even before Putin became president in 2000. She documents the establishment of Bank Rossiya, now sanctioned by the US; the rise of the Ozero cooperative, founded by Putin and others who are now subject to visa bans and asset freezes; the links between Putin, Petromed, and “Putin’s Palace” near Sochi; and the role of security officials from Putin’s KGB days in Leningrad and Dresden, many of whom have maintained their contacts with Russian organized crime. Putin’s Kleptocracy is the result of years of research into the KGB and the various Russian crime syndicates. Dawisha’s sources include Stasi archives; Russian insiders; investigative journalists in the US, Britain, Germany, Finland, France, and Italy; and Western officials who served in Moscow. Russian journalists wrote part of this story when the Russian media was still free. “Many of them died for this story, and their work has largely been scrubbed from the Internet, and even from Russian libraries,” Dawisha says. “But some of that work remains.”

Author: Gianni Zanini
Publisher: World Bank Publications
ISBN: 9780821353820
Category : Language Arts & Disciplines
Languages : en
Pages : 168

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This evaluation assesses the development effectiveness of the World Bank's lending and non-lending assistance to the Russian Federation since 1991, a 10-year period of tumultuous political, economic, and social change. This report concludes that an assistance strategy, concentrating on analytical and advisory services with limited financial support for Russia, would have been more appropriate than one involving large volumes of adjustment lending.

Author: John R. Nellis
Publisher: World Bank Publications
ISBN: 9780821345030
Category : Business & Economics
Languages : en
Pages : 44

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IFC Discussion Paper No. 38.QUOTEIt is now universally acknowledged that ownership matters; that private ownership in and of itself is a major determinant of good performance in firms... Decent economic policy and well-functioning legal and administrative institutions... matter greatly as well.QUOTEThis paper looks at what happens when the shift to private ownership gets far out in front of the effort to build the institutional underpinnings of a capitalist economy. The emphasis is on what went wrong and why and what, if anything, can be done to be correct it. Proposals include renationalization and/or postponement of further privatization, both to be accompanied by measures to strengthen the managerial capacities of the state. Neither approach seems likely to produce short-term improvements. The regrettable fact is that governments that botch privatization are equally likely to botch the management of state-owned firms. In a number of Central European transition countries, privatization is living up to expectations; and there is no need for such measures. For institutionally-weak countries, the less dramatic but reasonable short-term course of action is to push ahead more slowly with case- by-case and tender privatization in cooperation with the international assistance community in hopes of producing some success stories that will lead by example.