most to this growth (from 1986 to 2005), whereas labor input contributed only one-third. Interestingly, total factor productivity as a residual proved irrelevant, and showed even slightly negative figures (-0.3 percent) during the 1986–2005 period, meaning that improved factor quality arising from the reform process does not seem to be important, except in the context of organizational innovations during the early period of reform (from 1986 to 1990).