Abstract

http://ssrn.com/abstract=634081
 
 

References (54)



 
 

Citations (5)



 


 



Does Privatization Raise Productivity? Evidence from Comprehensive Panel Data on Manufacturing Firms in Hungary, Romania, Russia, and Ukraine


J. David Brown


US Census Bureau Center for Economic Studies; Institute for the Study of Labor (IZA)

John S. Earle


George Mason University - School of Public Policy; Central European University (CEU) - Department of Economics; Institute for the Study of Labor (IZA)

Almos Telegdy


Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies; Central European University

November 2004

W.E. Upjohn Institute Staff Working Paper No. 04-107

Abstract:     
We analyze the impact of privatization on multifactor productivity (MFP) using long panel data for nearly the universe of initially state-owned manufacturing firms in four economies. Controlling for firm and industry-year fixed effects and employing a wide variety of measurement approaches, we estimate that majority privatization raises MFP about 28 percent in Romania, 22 percent in Hungary, and 3 percent in Ukraine, with some variation across specifications, while in Russia it lowers it about 4 percent. Privatization to foreign rather than domestic investors has a larger impact (about 44 percent) and is much more consistent across countries. The positive effects emerge within a year in Hungary, Romania, and Ukraine and continue to grow thereafter, but are still ambiguous even after 5 years in Russia. Pre-privatization MFP exceeds that of firms remaining state-owned in all countries, implying that cross-sectional estimates overstate privatization effects. The patterns of the estimated effects cast doubt on a number of explanations for "when privatization works."

Number of Pages in PDF File: 52

Keywords: Privatization, productivity, foreign ownership, Hungary, Romania, Russia, Ukraine, transition

JEL Classification: D24, G34, L33, P31

working papers series


Download This Paper

Date posted: December 29, 2004  

Suggested Citation

Brown, J. David and Earle, John S. and Telegdy, Almos, Does Privatization Raise Productivity? Evidence from Comprehensive Panel Data on Manufacturing Firms in Hungary, Romania, Russia, and Ukraine (November 2004). W.E. Upjohn Institute Staff Working Paper No. 04-107. Available at SSRN: http://ssrn.com/abstract=634081 or http://dx.doi.org/10.2139/ssrn.634081

Contact Information

J. David Brown
US Census Bureau Center for Economic Studies ( email )
4600 Silver Hill Road
Washington, DC 20233
United States
301-763-8769 (Phone)
301-763-5935 (Fax)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
John S. Earle (Contact Author)
George Mason University - School of Public Policy ( email )
3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)
HOME PAGE: http://policy.gmu.edu/tabid/86/default.aspx?uid=168
Central European University (CEU) - Department of Economics ( email )
Nador u. 9.
Budapest H-1051
Hungary
+36 1 327 3229 (Phone)
+36 1 327 3232 (Fax)
HOME PAGE: http://www.ceu.hu/labor/staff.html
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Almos Telegdy
Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies ( email )
7621 Pécs, Papnovelde u. 22
Budapest, H-1112
Hungary
Central European University ( email )
Nador utca 9
Budapest, H-1051
Hungary
+36 1 327 3233 (Phone)
+36 1 327 3232 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 14,615
Downloads: 1,061
Download Rank: 9,763
References:  54
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.312 seconds