1 / 11

Factors Affecting Productivity of Slovenian Firms: A Study

This study by Polona Domadenik, Bojan Ivanc, and Denis Marinšek analyzes the productivity of Slovenian firms before and after the crisis, considering factors like ownership, subsidies, investment, and more. The research utilizes data from 1995 to 2015 to identify key drivers of firm productivity and assess the impact of different ownership structures and government interventions.

allyn
Download Presentation

Factors Affecting Productivity of Slovenian Firms: A Study

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Productivity of Slovenian firms Polona Domadenik, PhD University of Ljubljana, Faculty of Economics Bojan Ivanc, CFA, CAIA Chamber of Commerce & Industry of Slovenia Denis Marinšek, PhD, CFA University of Ljubljana, Faculty of Economics

  2. Motivation – Governance and Institutional Context • Privatization model in 90s favored internal owners (employees and managers) • efficient in SME , diversified ownership in big firms • State asan(in)efficient owner before and during the crisis • Period of 2004-2008 • riskier investments in private firms • ownership consolidation in firms with diversified owners • Deleveragingfollowing 2009 andgrowthafter2014 • Structural weaknesses within the regulatory system • The role of state aid(differenttypesofsubsidies) before and after the crisis

  3. Aim of the study

  4. Data • Firms’ annual financial statements – AJPES database 1995-2015 • Government subsidy allocation data – Ministryof Finance • Ownership structure gathered in several previous surveys • Methodology • TFP calculated as the residual from the production function (Levinsohn – Petrin procedure) • Dynamic production function estimation

  5. Results – all firms

  6. Results – all firms TFP in four different industries

  7. Results – all firms TFP according to export

  8. Results – state owned vs others TFP growth in state owned firms vs other firms

  9. Results – different owners TFP according to more detailed ownership structure

  10. What are factors that generate differences among firms? Before crisis After crisis Investment** R&D activity ** State owners * Subsidies** R&D activity *** Foreign owners *** Privatizatized firms ***

  11. Conclusions • Outperformingfactors: • Size (large to medium) • Exportorientation • R&D activity • Beforecrisisforeignownedfirmsandde-novo firmswere more productiveifcomparedwithothers. • After 2009 investmentand R&D activitywasimportantforproductivitygrowth, whilesubsidiesrepresentedsurvivingfactorforfirms in financialdifficulties. Stateownedfirmsreportedlowerproductivityduringthecrisis. • Zombie firmsrepresentedhighershare in totalstructure as reportedby OECD study (McGowan etal, 2017).

More Related