Enterprise Efficiency in Romania Redux

K. H. McIntyre
JEL codes: 
D21 - Firm Behavior: Theory, O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology, P27 - Performance and Prospects.
McIntyre and Martin (2013) found a significant efficiency gap between Romanian manufacturing and counterpart industries in other Central and Eastern European nations in 2005. Although disheartening from the standpoint of Romanian enterprise, the results suggest that there efficiency gains to be had. This companion paper presents updated estimates of Romanian enterprise efficiency from 2010. I find that that Romanian firms have in general made significant strides in efficiency between 2005 and 2010. Additional results show that the measurable industrial drivers of technical efficiency in Romania are consistent with firms operating in a competitive, market economy, suggesting that Romania has largely shed its Communist economic heritage.
Full text PDF file: