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Measuring Progress in Transition and Towards EU Accession: A Comparison of Manufacturing Firms in Poland, Romania, and Spain

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  • Wendy Carlin
  • Saul Estrin
  • Mark Schaffer

Abstract

This paper provides new evidence on progress in transition and the "readiness" of enterprises for accession for the EU using a detailed survey administered to approximately 200 manufacturing firms in each of Poland, Romania, and Spain. A major innovation is the use of a market economy and member country of the EU - Spain - as a benchmark against which to measure progress in transition. The paper finds that new private firms (firms established as private ab initio) in both Poland and Romania are growing the fastest, but on measures of integration and investment, it is Polish ab initio private firms and privatized firms that look most similar to the Spanish. Polish state-owned firms, and Romanian state-owned, privatized and (to a lesser extent) ab initio private firms more often lag behind. With respect to compliance with EU directives, Poland tends to lag behind Spain but lie significantly ahead of Romania. Levels of awareness of and compliance with directives did not vary with ownership type amongst the Eastern European firms. Progress in transition at the country level seems to be consistent with improvements in compliance with the major components of the acquis.

Suggested Citation

  • Wendy Carlin & Saul Estrin & Mark Schaffer, 1999. "Measuring Progress in Transition and Towards EU Accession: A Comparison of Manufacturing Firms in Poland, Romania, and Spain," William Davidson Institute Working Papers Series 224, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:1999-224
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    Cited by:

    1. Willem Molle, 2002. "Globalization, Regionalism and Labour Markets: Should We Recast the Foundations of the EU Regime in Matters of Regional (Rural and Urban) Development?," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 161-172.
    2. Stefan Bojnec & Ana Xavier, 2004. "Entry and exit in transition economies: the Slovenian manufacturing sector," Post-Communist Economies, Taylor & Francis Journals, vol. 16(2), pages 191-214.
    3. Janos Kollő & Tomasz Mickiewicz, 2005. "Wage Bargaining, Privatisation, Ability to Pay and Outside Options: Evidence from Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 17(4), pages 465-483.
    4. Nivorozhkin, Eugene, 2004. "Financing choices of firms in EU accession countiries," BOFIT Discussion Papers 6/2004, Bank of Finland, Institute for Economies in Transition.
    5. Nivorozhkin, Eugene, 2005. "Financing choices of firms in EU accession countries," Emerging Markets Review, Elsevier, vol. 6(2), pages 138-169, June.
    6. Elisabetta Bertero & Laura Rondi, 2002. "Hardening a Soft Budget Constraint Through 'Upward Devolution' to a Supranational Institution: The Case of Italian State-Owned Firms and the European Union," WIDER Working Paper Series DP2002-16, World Institute for Development Economic Research (UNU-WIDER).
    7. Pradeep Mitra & Alexander Muravyev & Mark E. Schaffer, 2008. "Convergence in Institutions and Market Outcomes: Cross-Country and Time-Series Evidence from the BEEPS Surveys in Transition Economies," Discussion Papers of DIW Berlin 847, DIW Berlin, German Institute for Economic Research.
    8. Berde, Éva & Scharle, Ágota, 2004. "A kisvállalkozók foglalkozási mobilitása 1992 és 2001 között [Employment mobility in small business between 1992 and 2001]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 346-361.
    9. Morris Bornstein, 2000. "Post-Privatization Enterprise Restructuring," William Davidson Institute Working Papers Series 327, William Davidson Institute at the University of Michigan.
    10. Carmen Raluca Stoian & Roger Vickerman, 2005. "The Interplay Between Foreign Direct Investment, Security and European Integration: The Case of the Central and Eastern European Countries," Studies in Economics 0509, School of Economics, University of Kent.
    11. Earle, John S. & Telegdy, Almos, 2002. "Privatization Methods and Productivity Effects in Romanian Industrial Enterprises," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 657-682, December.
    12. Tomasz Mickiewicz & Kate Bishop, 2003. "Wage Determination: Privatised, New Private And State Owned Companies. Empirical Evidence From Panel Data," William Davidson Institute Working Papers Series 584, William Davidson Institute at the University of Michigan.
    13. Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 189-203.
    14. repec:zbw:bofitp:2004_006 is not listed on IDEAS
    15. Mitra, Pradeep & Muravyev, Alexander & Schaffer, Mark E., 2009. "Convergence in institutions and market outcomes: cross-country and time-series evidence from the business environment and enterprise performance surveys in transition economies," Policy Research Working Paper Series 4819, The World Bank.
    16. Wallner, Klaus, 2003. "Specific investments and the EU enlargement," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 867-882, May.
    17. Sels, A.T.H., 2006. "Foreign direct investment as an entry mode. An application in emerging economies," Other publications TiSEM 583ca9b5-1691-425d-8f77-0, Tilburg University, School of Economics and Management.

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