competitiveness, employment, Europe, FDI, manufacturing, Private sector development, innovation and knowledge-based economy, privatization, CASE Reports, CASE Network Studies and Analyses

Growth and Performance Factors in Polish Manufacturing Firms in 1998-2003 in the Light of Survey Data


We investigate possible factors of change in employment between 1998 and 2003 in 220 companies from four industries of Polish manufacturing (food, electronics, automotive and pharmaceuticals), that were subject to an enterprise survey. We also seek to explain the differences in performance among companies. We find that firms that were more competitive and more innovative laid off relatively less workers. Ownership status and history seem to be relevant factors too, as companies that were started as private businesses slightly increased employment, while the state-owned enterprises experienced proportionally the largest employment cuts; as for privatized companies, those taken over earlier performed better in terms of employment than those privatized later. However, econometric analysis of premia of early privatization and foreign ownership showed that only the latter factor played a significantly positive role for companies' revenues, productivity, profitability and the level of wages.