Business Environment, Exports, Ownership, and Firm Performance
- 1 February 2011
- journal article
- Published by MIT Press in The Review of Economics and Statistics
- Vol. 93 (1), 309-337
- https://doi.org/10.1162/rest_a_00135
Abstract
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. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.Keywords
This publication has 18 references indexed in Scilit:
- The Effects of Privatization and Ownership in Transition EconomiesJournal of Economic Literature, 2009
- Priorities and sequencing in privatization: Evidence from Czech firm panel dataEuropean Economic Review, 2008
- Ownership, investment climate and firm performanceEconomics of Transition, 2006
- To Steal or Not to Steal: Firm Attributes, Legal Environment, and ValuationThe Journal of Finance, 2005
- Competition and Innovation: An Inverted-U Relationship*The Quarterly Journal of Economics, 2005
- Financial and Legal Constraints to Growth: Does Firm Size Matter?The Journal of Finance, 2005
- Capital markets and capital allocation: Implications for economies in transition*Economics of Transition, 2004
- The Regulation of LaborThe Quarterly Journal of Economics, 2004
- When Does Privatization Work? The Impact of Private Ownership on Corporate Performance in the Transition EconomiesThe Quarterly Journal of Economics, 1999
- Ownership Concentration and Corporate Performance in the Czech RepublicJournal of Comparative Economics, 1999