Business environment, exports, ownership, and firm performance

0358764 - NHU-C 2012 RIV US eng J - Journal Article
Commander, S. - Švejnar, Jan
Business environment, exports, ownership, and firm performance.
Review of Economics and Statistics. Roč. 93, č. 1 (2011), s. 309-337. ISSN 0034-6535. E-ISSN 1530-9142
R&D Projects: GA ČR GAP402/10/2130; GA MŠMT LC542
Institutional research plan: CEZ:MSM0021620846
Keywords : corporate performance * transition economies * privatization
Subject RIV: AH - Economics
Impact factor: 2.664, year: 2011

We use two large samples of firms to assess the effects of business environment constraints, competition, export orientation, and ownership on firm performance. We deal with omitted variables, errors in variables, and endogeneity, and find that few business constraints affect performance. Replicating the analysis with Doing Business and Heritage Foundation indicators of the business environment yields similar results. In fact, country fixed effects, reflecting time-invariant differences in the business environment as well as other factors such as health care and education, matter more for firm performance than differences in the business environment across firms within countries.
Permanent Link: http://hdl.handle.net/11104/0196707