International sourcing and the productivity of SMEs in transition countries: Formal and informal "region effects" and the communist footprint Articles uri icon

publication date

  • June 2022

start page

  • 347

end page

  • 359


  • 145

International Standard Serial Number (ISSN)

  • 0148-2963

Electronic International Standard Serial Number (EISSN)

  • 1873-7978


  • We study how SMEs in transition countries can boost productivity by sourcing inputs from regions with which they share formal institutional links (the European Union) or informal links (the former communist bloc). Additionally, we discuss how the length of the communist footprint may modify these productivity gains. Using a sample of SMEs located in Eastern Europe, we find a positive relation between firm productivity and inputs from regions with formal and informal institutional links. We also find that this positive relation is weaker for firms with longer communist footprints that source inputs from EU countries.


  • Business
  • Economics
  • Mechanical Engineering


  • international sourcing; transition countries; region effect; productivity; institutional links; communist footprint; smes