OWNERSHIP STRUCTURE AND TOTAL FACTOR PRODUCTIVITY: DIFFERENCES ACROSS INDUSTRIES IN CROATIA

Factors explaining productivity growth include internal and external categories, such as quality of management and labour, product innovation and competition.However, ownership structure is rarely mentioned as a potential factor for impacting productivity growth.On the other hand, it is often assumed that private firms are more productive than stateowned, the argument frequently additionally emphasized in the public discussions in (post)transition economies.Since aggregate data hides developments in individual sectors, it is important to investigate the relationship between ownership and productivity on the industry level.Hence, in this article we investigate trends in productivity related to the ownership structure across industries using data for Croatia both during the boom and recession phase.Results show higher increases in productivity in the observed period in the public, not private, sector and that TFP path at the sectoral level in the state-owned firms is more erratic than in the private segment of the economy.