Case Studies on Impediments to Exports in Small Transition Economies Volume I

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Case Studies on Impediments to Exports in Small Transition Economies Volume I Working Paper Case Studies on Impediments to Exports in Small Transition Economies Volume I Jcinos Gcics (Editor) WP-96-145 December 1996 UllASA International Institute for Applied Systems Analysis A-2361 Laxenburg Austria b.4: Telephone: +43 2236 807 Fax: +43 2236 71313 €-Mail: [email protected] Case Studies on Impediments to Exports in Small Transit ion Economies Volume I Jdnos Gdcs (Editor) WP-96-145 December 1996 TIC)~X'IIZ~Popt rs are interim reports on work of the International Institute for Applied S>.stems Analysis and have received only limited review. Views or opinions expressed herein do not ilecessarily represent those of the Institute, its National Member Organizations, or other organizations supporting the work. UllASA International Institute for Applied Systems Analysis A-2361 Laxenburg Austria 6.i: Telephone: +43 2236 807 Fax: +43 2236 71313 E-Mail: [email protected] Contents 1 Introduction 2 Comnlon Schenles Used for the Elaboration of the Case Studies 3 Bulgaria by Rumen Dobrinsky and Ira Yaneva 4 Estonia by .4lari Purju 5 Hungary by ~~nesCsermely 6 Latvia by Inna Sliteinbuka and Alexandra Cirule Volulne I1 7 Ronlania by 1;asile Pilat and Laurentiu Ciocirlaii 8 Slovakia hy ,1611 Fidrinuc and Jarko Fidrinuc 9 Slovenia by Franjo ~tiblar 10 Russia by \'ladi~nir Drebentsov Case Studies on Impediments to Exports in Small Transition Economies Volume I Jdnos Gdcs (Editor) 1 Introduction This series of enterprise case studies grew out from a 1995-1996 research of tlle Ecoiloillic Transi- tion aiitl Integration Project of IIASA. This research program was called Illlpediillents to Exports in Small Transition Economies. It acknowledged the importa.nce of export developmeilt for the recovery of tlie ecoilomies of Central and Eastern Europe following their deep t,ransformational recession in 1990-1994. The main goal of the study was a, systematic empirical analysis of the tlifl'erent liintls of impedilnents to exports in various small East European countries. Tlle project inclutled the coordinated elabora.tion of country studies for seveu small tra.nsi- tioil econoillies (STEs) and the writing of three topical st,udies. Originally eight countries were selecteti: Bulgaria, Czech Republic, Estonia, Hungary, Lat,via, Romania, Slovalcia and Slovenia. 'Tllp C'zech country study, however, despite all efforts, was not co~npletedsuccessfully. Nevertlie- Icss. the topical studies (one dealing with government efforts in support exports, another with the iinpa.ct of FDI on exports, and the third analyzing impedinlents t,o recovery of STE exports to Russia) tool< int,o account also the Czech experience. The authors of the country studies and the author of tlie topical study on Russia were i~ec~uestetlto base their work on 20 enterprise case studies ea.cli (eventually tlle Russian study tvas I~asetl011 10 cases). Before the start of the research a common scheme of the enterprise case studies wa.s discussed and agreed upon with the aut,liors at a worlishop in January 199.5 at 11-ASA. Laxenburg. After completing their work the aut,llors were asked to supplenleilt a short version of their case studies to their main text. The resea.rch results were discussed a.t a second norl<sllop at IIASA on the Summer of 1995. It was found that not oillg the main studies were tvorth ~~~tblishingbut also the underlying case studies. It was decided that, due to the leilgth of the full text, t~vorelated publications would be arranged, one hook ma.de up of the country st,utlies and t,opical studies and another of tlle enterprise case studies. Tlle first book is being published by a commercial publisher: Cooper R. and GAcs, J. (Eds.) Tratle C;~.owtll ill Transition Econon~ies:Export Impediments for Central and Eastern Europe, Etl\vartl Elgar, Aldersliot (forthcoming in 1997). The second publicatioll is the present series of case st,udies publislled by IIASA which is a.vailable for readers of the Cooper and C46cs (1997) l>oolc 011 request at the cost of post and package. The C'ooper and C46cs (1997) book is considered an independent volunle that can be read separately. ~vitlioatthe acco~llpaiiyiiigcase studies. The interested reader, however, would learn Illore ahout the topic and the world of enterprises in the respective couiltries if he or she reads some of tlie case studies either randomly or by systematic selection. Tlle case stutly publicatioll is obviously less compact and less analytical than tlie book with the studies. It is a background material tliat probably nobody would read from cover to cover. Its readers are strongly advised to get aiicl reacl tlie Cooper aiid G6cs (1997) book with tlic country and topical studies. Never- tlleless, specialists of enterprise behavior or country specialists would probably be interested to leael soiiie of tlle elite1 piise case studies i11 tliemselves. Because tliis series of case studies are coilsidered an accoiilpai~yiiiginaterial to the Cooper aiicl G6cs (1997) book, and because of limited space we do not repeat liere tlie assumptions antl metliotlological consideratioiis of tlie researcli project on Impedinlents to Exports. That i\ coverecl in the Introduction and Summary cliapter of Cooper aiid C46cs (1997). In order to uiiclerstancl tlie. sometinies hidden, structure of the case studies, we reproduce Iiere, lio\vever, tlie coiiinio~isclienie of tlie Setrip of the Enterprise Case Studies and the C'lieclilist of Questions tliat the autIior\ of the enterprise case studies were requested to use tvlieii preparing tlie cases. Despite tlie coiiii~~oiischeme that was used the readers may find tl~ecase studies highly diverse ill respect to lengtli, structure and content. This is due to several reasons: partly to differences ill access to tlie enterprises and to enterprise data in the different countries; to differences in the tle\clopment of the individual econolnies; and due to differences in the preferences and style of tlle autllors. Since tlie case study publication was intended to be only an accompanying material the editor dicl not pus11 tlie autliors to further complete and refine tlieir case studies and thus 111ahi1igtlie publication more lioinogenous. In fact, even language editing was ininimal, just to ellsure legibility. Access to enterprise managers and eliterprise data has become increasingly difficult in East ('eiitral Europe i11 the course of econornic transition. Tlie autliors made strong efforts to get leli,il,le. coilsistent aiid publisliable illforiliation from those enterprises tliat were the target of tlie xtutly. LIany times e~lterp~ise managers declined to give iiiforn~ation,especially if tlie enterprise \\as not successful in the course of transformation or i11 its export performance. For this reason it is ol>vious tliat our sample has an unintended bias towards better performing enterprises. Several c.ilterlxises dicl not agree to publish tlieir names: in these cases the autllors just gave numbers or abl>reviations for the identification of the individual firms (see the Bulgarian, Romanian and the Slovenia11 cases). Due to teclinical reasons, the author of the Russia11 topical paper did not elahoiate \.erl)al case studies, but chose ten foreign trading companies ant1 hacl tlieir managers fllletl out n cluestio~inaire about the cliaracteristics of their tracle with the selectee1 East and ('c.ntral European ecoiioniies. I11 the last cliapter tlie results of this survey are presented. 2 Common Schemes Used for the Elaboration of the Case Studies (A) The Setup of the Enterprise Case Studies 1. Selection of enterprises \\.'lien selecting tlie enterprises the following criteria is to be used. (Of course, even these do not ensure tliat tlie saiilple will be represelitative.) Enterprises sliould be selected that are currently (or were in 1990) lion-~narginalesporters (at least 5% of output esported, some of tlie enterprises iiiore than 20%). Tliey are esporters of manufacturing products or services. Some of tlieni s1ioulcl esport their ow11 products or services, some of them are esporters for others. Bot,li esporters t,o western and former CMEA (USSR) rna.rkets should be selected. So111enew esporters sliould be selected. Botli state otvned and private firms should be investigated; small, inediunl and large firms. .At least one firiii slioultl be selected \vliicli operates outsicle the capital. At least two joint ventures or fully foreign owned companies should be selected. 2. Conlnlodity orientation Gi\.ril their iinl~ortaiicein esports, it is advised that producers/esporters of at least five of tlie follo\ving cominodity groups sliould be selected where possible: Llaiiufacture of clieiiiicals obtained from petroleum (petrocliemicals) aiid from coal (NACE 252) Iron and steel industry, escluding integrated coke ovens (NAC:E 221) Manufacture and assembly of motor veliicles and manufacture of mot,or vehicle engines (N.ACE 3.51) A~Ia,nufact~ureof tools a.nd finished inetal goods escept electrica,l equipment (NAClE 316) hlanufacture of electrical machinery (comprising electric motors, electricity generators, transfornlers, switches, switch gear and other basic elect,rical plant) (NAC:E 1342) Alanufacture of ready made clothing and accessories (NAC'E 4.53) Iinit,ting industry (NACE 436) hIanufact,ure of inass produced footwear (NACE 4.51) LIanufacture of wooclen furniture (NACE 467) Slaugl~tering.preparing and preserving of nieat (escluding hutcliers's tratle) (N.4CE 412) Processing ancl preserving of fruit and vegetables (NAG414) Tlie above 11 conlinodity groups made up 48'% of the C'EEC manufacturing esports to EC' in 1993. and 46'i/ri of the growth of C'EEC maliufacturilig esports to EC from 1988 to 1993. 3. Standard information to collect about the enterprises (see also check list below for details) 3.1 Characteristics of the enterprise in 1990-1994: Size, date of birth and consecutive steps of transformation, ownership ancl organization, main products, maill markets, performance (out put. einployment , profit, indebtedness). i3.2 Esport orientation: traclitional or new; is esporting importance for the overall production al~clprofits of tlie firm; East orland iVest, target countries, direct esporting or through iiiediators, o\rn product or production for contract (subcontracting).
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