Privatization Incidence, Ownership Forms, and Firm Performance: Evidence from Slovenia

JOURNAL OF COMPARATIVE ECONOMICS, Vol. 25 No. 2, 1997

Posted: 15 May 1998

See all articles by Stephen C. Smith

Stephen C. Smith

George Washington University - Department of Economics

Beom-Cheol Cin

Kyonggi University - Division of Economics

Milan Vodopivec

World Bank - Human Development Network; IZA Institute of Labor Economics

Abstract

There is active debate in transition economies about the extent to which employee and foreign ownership ought to be encouraged or discouraged in privatization; but empirical evidence is scarce. This paper employs a unique data set on Slovene firms in an early period of "spontaneous privatization." Characteristics of the incidence of privatization to employee and foreign owners, and subsequent firm performance, are examined. The paper controls for simultaneity between privatization and firm performance, using a two-stage Tobit-least squares procedure. An elasticity of output with respect to ownership type is estimated. On the margin, a percentage point increase in foreign ownership is associated with about a 3.9% increase in value added; and for employee ownership with about a 1.4% increase; there is evidence of diminishing marginal productivity gains for both forms of ownership.

JEL Classification: G32, L33, P21

Suggested Citation

Smith, Stephen C. and Cin, Beom-Cheol and Vodopivec, Milan, Privatization Incidence, Ownership Forms, and Firm Performance: Evidence from Slovenia. JOURNAL OF COMPARATIVE ECONOMICS, Vol. 25 No. 2, 1997, Available at SSRN: https://ssrn.com/abstract=87848

Stephen C. Smith (Contact Author)

George Washington University - Department of Economics ( email )

2115 G Street NW
306 Monroe Hall
Washington, DC 20052
United States

HOME PAGE: http://https://www2.gwu.edu/~iiep/about/faculty/ssmith/

Beom-Cheol Cin

Kyonggi University - Division of Economics ( email )

Kyonggi-Do, Suwon 442-760
Korea
031-249-9411 (Phone)
031-252-0918 (Fax)

Milan Vodopivec

World Bank - Human Development Network ( email )

1818 H Street, NW
Washington, DC 20433
United States

IZA Institute of Labor Economics

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,160
PlumX Metrics