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Structural Changes in the Manufacturing Industry of Transition Economies

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  • Malinka Koparanova

Abstract

This paper addresses the pattern of structural change in selected transition and developed economies in Europe both from the point of view of a national economy and from cross-country perspective as well. It uses cross-industry country data at 2 and 3-digit level of the NACE classification to examine structural changes in the manufacturing industry in the second half of the 90’s. To asses the structural change the paper proposes a decomposition of productive efficiency into macroeconomic, or pro-cyclical component and “structural effect” component, based on two-error component model of unobservable effects. Estimation results from panel data models provided empirical evidence for a heterogeneous development pattern with dominating macroeconomic factors in many transition economies and prevailing structural factors in a few countries.

Suggested Citation

  • Malinka Koparanova, 2007. "Structural Changes in the Manufacturing Industry of Transition Economies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-42.
    • Handle: RePEc:bas:econst:y:2007:i:3:p:3-42
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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