Productivity after ownership transformation-Serbian case

Abstract

Differences in total factor productivity of privatised and newly-founded private companies in Serbia are empirically estimated in this paper. On the panel data from a sample of 900 firms in three regions - Vojvodina, Central Serbia and Belgrade, it is found that majority foreign owned companies, as well as export-oriented and newly-founded businesses which did not undergo the process of ownership transformation recorded higher productivity than the average productivity in these regions. Regional inequality in companies' performance elasticity to foreign capital, exports and market concentration is also empirically proved.