Privatization Methods and Productivity Effects in Romanian Industrial Enterprises

W.E. Upjohn Institute Staff Working Paper No. 02-81

47 Pages Posted: 20 Mar 2002

See all articles by John S. Earle

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Almos Telegdy

Corvinus University of Budapest; Magyar Nemzeti Bank

Date Written: April 2002

Abstract

Comprehensive panel data on privatization transactions and labor productivity in Romanian industrial corporations are used to describe the post-privatization ownership structure, and to estimate the effect of Romania's diverse privatization policies on firm performance. The econometric results show consistently positive, highly significant effects of private ownership on labor productivity growth, the point estimates implying an increased 1.0 to 1.7 percentage growth for a 10 percent rise in private shareholding. The strongest estimated impacts are associated with sales to outside blockholders; insider transfers and mass privatization are estimated to have significantly smaller-although still positive-effects on firm performance.

Keywords: Romania, privatization, industry, Earle, Telegdy, Upjohn

JEL Classification: G32, G34, L32, L33, P20, P31

Suggested Citation

Earle, John S. and Telegdy, Almos, Privatization Methods and Productivity Effects in Romanian Industrial Enterprises (April 2002). W.E. Upjohn Institute Staff Working Paper No. 02-81, Available at SSRN: https://ssrn.com/abstract=292825 or http://dx.doi.org/10.2139/ssrn.292825

John S. Earle (Contact Author)

George Mason University - Schar School of Policy and Government ( email )

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)

HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

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

Almos Telegdy

Corvinus University of Budapest ( email )

Hungary

Magyar Nemzeti Bank ( email )

Szabadsag ter 8-9
Budapest, H-1850
Hungary

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