The Determinants of Privatized Enterprise Performance in Russia

143 Pages Posted: 26 Feb 2002

See all articles by Manuela Angelucci

Manuela Angelucci

University of Michigan - Department of Economics; Institute for the Study of Labor (IZA)

Alan A. Bevan

European Bank for Reconstruction and Development (EBRD) - Office of the Chief Economist

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Julian A. Fennema

Heriot-Watt University - Centre for Economic Reform and Transformation (CERT)

Boris Kuznetsov

Government of the United States of America - Bureau of Economic Analysis (BEA); National Research University Higher School of Economics

Giovanni Mangiarotti

Heriot-Watt University - School of Management and Languages

Mark E. Schaffer

Heriot-Watt University - Centre for Economic Reform and Transformation; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: February 2002

Abstract

Using data from a large enterprise-level panel designed to address this issue, we account for enterprise performance in Russia. We link performance to four aspects of the economic environment outlined in the literature: enterprise ownership; corporate governance; market structures and competition; and financial constraints. We conclude that private ownership and better performance are not correlated, though restructuring is positively associated with the competitiveness of the market environment. These findings on private ownership support those of previous studies, eg Earle and Estrin (1997). Moreover, we find only limited evidence that financially unconstrained firms are better in their undertaking of restructuring measures then financially constrained firms. Further analysis suggests that causality runs from restructuring to financial constraint, rather than the reverse. Finally, our findings indicate strong complementarities between the four factors influencing improved company performance, confirming the view that these factors need to be considered jointly.

Keywords: Privatization, enterprise performance, competition, corporate governance, investment

JEL Classification: D21, G34, L10, P31

Suggested Citation

Angelucci, Manuela and Bevan, Alan A. and Estrin, Saul and Fennema, Julian A. and Kuznetsov, Boris and Mangiarotti, Giovanni and Schaffer, Mark E., The Determinants of Privatized Enterprise Performance in Russia (February 2002). CEPR Discussion Paper No. 3193. Available at SSRN: https://ssrn.com/abstract=302016

Manuela Angelucci (Contact Author)

University of Michigan - Department of Economics ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Alan A. Bevan

European Bank for Reconstruction and Development (EBRD) - Office of the Chief Economist ( email )

One Exchange Square
London EC2A 2JN
United Kingdom
+44 20 7338 7725 (Phone)
+44 20 7338 6111 (Fax)

Saul Estrin

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Julian A. Fennema

Heriot-Watt University - Centre for Economic Reform and Transformation (CERT) ( email )

Dept. of Economics, School of Management
Edinburgh EH14 4AS
United Kingdom
+44 131 451 3492 (Phone)
+44 131 451 2296 (Fax)

Boris Kuznetsov

Government of the United States of America - Bureau of Economic Analysis (BEA) ( email )

Maly Gnezdnikovsky 4
Moscow 103009
Russia
+7 502 937 6750 (Phone)
+7 502 937 6753 (Fax)

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Giovanni Mangiarotti

Heriot-Watt University - School of Management and Languages ( email )

Edinburgh EH14 4AS, Scotland
United Kingdom
+44 131 451 3968 (Phone)
+44 131 451 3296 (Fax)

Mark E. Schaffer

Heriot-Watt University - Centre for Economic Reform and Transformation ( email )

School of Management - Department of Economics
Edinburgh EH14 4AS
United Kingdom
+44 131 451 3494 (Phone)
+44 131 451 3008 (Fax)

HOME PAGE: http://www.hw.ac.uk/ecoWWW/cert

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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