Eastern and Central Asia Regional Productivity Study

Project Dates

11/15/2006 - 12/31/2006


This project, a part of the World Bank's Eastern and Central Asia (ECA) Regional Productivity Study, contributed to the understanding of existing constraints for firm and employment creation and productivity and helped to identify best practices for improving the business climate. Researchers investigated the effects of privatization, product and labor market liberalization, and obstacles to growth in the new private sector on reallocation and its productivity in Hungary, Romania, Russia, and Ukraine. The study included a decomposition of labor productivity growth into components attributable to within-firm changes, a between-firm component, a firm entry component; and a firm exit component. Researchers identified conditions under which the reallocation process is more effective and, whether in cross-country comparisons, differences in the business and policy environment affect the degree to which reallocation is productivity enhancing.


The Microeconomics of Creating Productive Jobs: A Synthesis of Firm-Level Studies in Transition Economies, J. David Brown, John S. Earle, World Bank Policy Research WP 3886 (April 2006)


World Bank

Subject Area

INTERNATIONAL ISSUES; International labor comparisons