TY - JOUR
T1 - The productivity effects of privatization
T2 - Longitudinal estimates from Hungary, Romania, Russia, and Ukraine
AU - Brown, J. David
AU - Earle, John S.
AU - Telegdy, Álmos ́
PY - 2006/2
Y1 - 2006/2
N2 - This paper estimates the effect of privatization on multifactor productivity using comprehensive panel data on initially state-owned manufacturing firms in four economies. We exploit the data's longitudinal dimension to control for preprivatization selection and estimate longrun impacts. The estimates are robust to functional form but sensitive to selection controls. Our preferred random growth estimates imply positive multifactor productivity effects of 15 percent in Romania, 8 percent in Hungary, and 2 percent in Ukraine, but a -3 percent effect in Russia. The foreign privatization effect is larger (18-35 percent) in all countries. Positive domestic effects appear immediately in Hungary, Romania, and Ukraine and continue growing thereafter, but emerge only five years after privatization in Russia. © 2006 by The University of Chicago. All rights reserved.
AB - This paper estimates the effect of privatization on multifactor productivity using comprehensive panel data on initially state-owned manufacturing firms in four economies. We exploit the data's longitudinal dimension to control for preprivatization selection and estimate longrun impacts. The estimates are robust to functional form but sensitive to selection controls. Our preferred random growth estimates imply positive multifactor productivity effects of 15 percent in Romania, 8 percent in Hungary, and 2 percent in Ukraine, but a -3 percent effect in Russia. The foreign privatization effect is larger (18-35 percent) in all countries. Positive domestic effects appear immediately in Hungary, Romania, and Ukraine and continue growing thereafter, but emerge only five years after privatization in Russia. © 2006 by The University of Chicago. All rights reserved.
UR - http://www.scopus.com/inward/record.url?scp=33644510411&partnerID=8YFLogxK
U2 - 10.1086/499547
DO - 10.1086/499547
M3 - Article
SN - 0022-3808
VL - 114
SP - 61
EP - 99
JO - Journal of Political Economy
JF - Journal of Political Economy
IS - 1
ER -