Prospective Nato or EU Membership and Institutional Change in Transition Countries

Belke, Ansgar; Bordon, Ingo G.; Melnykovska, Inna; Schweickert, Rainer

doi:10.2139/ssrn.1492172

Cited by 10 publications

(5 citation statements)

References 63 publications

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“…The BEEPS covers 28 transition economies in Central and Eastern Europe with nine of them being members of the European Union (EU) since 2004 or 2007, respectively. The EU accession was accompanied with considerable institutional improvements for the affected countries (Belke et al ., ). Hence, we observe markedly different levels of institutional development within the covered world region.…”

Section: Introductionmentioning

confidence: 99%

Ownership Concentration, Institutional Development and Firm Performance in Central and Eastern Europe

Balsmeier

Czarnitzki

2015

Manage Decis Econ

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10096.pdf results show an inverted u-shaped relation of ownership concentration and firm performance. Non-technical SummaryWe interpret these findings as evidence for a classic agency problem emanated from weaker monitoring by the shareholders if ownership concentration is low. With rising ownership concentration this effect is dominated by a 'private benefits of control' problem. Larger shareholders apparently let value enhancing growth opportunities forgo to avoid contests of control and save private benefits of being the sole controlling firm owner. An alternative explanation for this finding is that rising new equity for growth enhancing investments is especially challenging in less developed countries due to weak investor protection rights. But whoever is actually afraid of investing, the incumbent firm owner or potential new investors, staying with either highly or lowly concentrated ownership seems not to be growth maximizing for firms in institutionally less developed economies. Das Wichtigste in Kürze (Summary in German)Unternehmerisches Verhalten wird maßgeblich von wichtigen institutionellen 2009 we find an inverted u-shaped relation of ownership concentration and firm performance for those firms that operate in non-EU-member countries as well as those firms that are situated in less developed legal systems according to Freedom House ratings. We interpret these findings as evidence for a classic agency problem in the lower part of the ownership concentration distribution that is dominated by a 'private benefits of control' problem with rising ownership concentration. JEL-Classification: G32, L25, O16, P31

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Section: Introductionmentioning

confidence: 99%

Ownership Concentration, Institutional Development and Firm Performance in Central and Eastern Europe

Balsmeier

Czarnitzki

2015

Manage Decis Econ

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“…It can be argued that in EU member states the institutional development is relatively high. This view is, for instance, supported by Belke et al (2009) who report considerable institutional improvements for those nine countries that joined the EU within the last decade.…”

Section: Data Descriptive Statistics and Methodological Remarksmentioning

confidence: 79%

How Important is Industry-Specific Managerial Experience for Innovative Firm Performance?

Balsmeier

Czarnitzki

2013

AMPROC

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Non-technical SummaryAccording to many studies it is a commonly held view among economists that the level of countries' institutional development is positively associated with economic growth. Among other factors, this interrelation might be explained by higher or more advanced innovative activities of firms operating in countries with well-developed institutional environments. It is thus of great interest to understand how differences in institutional environments moderate firms' decisions to innovate and the success of these activities.The present study focuses on industry-specific experience of the top manager as a largely neglected but important firm attribute with respect to innovation activities. As experienced managers are likely to have better insights into future business opportunities, threats, niche markets, products, technologies and market development, managerial experience is generally expected to be positively related to innovative activity and its performance. We argue that managerial experience is especially important in environments with lower institutional developments which are presumably less conducive to innovation activities. The empirical analysis tests this presumption based on the 2008-2009 BusinessEnvironment and Enterprise Performance Survey (BEEPS) which comprises firm-level data from 27 Central and Eastern European countries. Regression analyses show that managerial experience enhances both the propensity to innovate and the innovative firm performance, as measured by the share of sales accounted for by new products. Further empirical investigations show that having an experienced manager is especially beneficial for small firms operating outside the EU and in institutionally less developed regions, respectively.These findings support the perception that managerial experience is an important factor explaining firms' innovation activities as it helps to identify new business opportunities and it partly substitutes for institutional obstacles on the road to commercialization of new products. Das Wichtigste in Kürze (Summary in German)Zahlreiche Studien belegen einen positiven Zusammenhang zwischen den institutionellen AbstractThis study examines how industry-specific managerial experience affects firms' innovation performance in the context of different institutional environments. Based on firm-level data from 27 Central and Eastern European countries we identify a robust positive relationship between industry-specific experience of ...

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“…3 Explanatory variables include standard growth determinants, namely per-capita GDP, population growth, investment, openness, terms-of-trade growth and human capital formation. 4 This baseline growth regression speci…cation is augmented to take into account explanatory factors speci…c to the growth performance of transition and NMS. To control for the impact of changing terms of trade following transitionrelated structural change and developments in world commodity prices, terms of trade changes are included among the set of explanatory variables (Iradian (2007)).…”

Section: Methodsmentioning

confidence: 99%

EU Accession: A Road to Fast-track Convergence?

Böwer

Turrini

2010

Comp Econ Stud

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This paper investigates the accession-related economic boom in the countries which recently entered the European Union. The analysis tests whether, on top of the standard growth determinants, the period of EU accession made a signi…cant di¤erence to the growth performance of the New Member States (NMS). The paper …nds that the period of EU accession is characterised by signi…cantly larger growth rates of per-capita GDP, even after controlling for a wide range of economic and institutional factors. This e¤ect is robust and particularly strong for countries with relatively low initial income levels, weak institutional quality and less advanced …nancial development, suggesting that EU accession has been speeding up the catching-up process and improved the institutions of the laggards among the NMS. The prospect of EU membership which has triggered large capital in ‡ows seems to have fostered economic growth of those NMS with lower degrees of …nancial depth.

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Prospective Nato or EU Membership and Institutional Change in Transition Countries

Cited by 10 publications

References 63 publications

Ownership Concentration, Institutional Development and Firm Performance in Central and Eastern Europe

Ownership Concentration, Institutional Development and Firm Performance in Central and Eastern Europe

How Important is Industry-Specific Managerial Experience for Innovative Firm Performance?

EU Accession: A Road to Fast-track Convergence?

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