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The Impact of Public Administration on the Efficiency of Russian Firms

Author

Listed:
  • S. I. Dolgikh

    (National Research University Higher School of Economics)

  • B. S. Potanin

    (National Research University Higher School of Economics)

Abstract

— The paper evaluates the impact of the state form of ownership on the profitability of the assets of Russian companies. In order to take into account the endogenous formation of ownership, an original combination and modification of econometric analysis methods are used (a new semiparametric regression model is proposed) for data from a sample of 12 000 commercial firms in 12 sectors of the economy, which was taken for 2020. The results of the analysis indicate that state firms are less efficient. At the same time, the gap in the efficiency of public and private companies can be significantly overestimated, if we do not take into account the nonrandom selection into the category of state-owned firms, which, in particular, may be due to the fact that more attractive firms are more likely to be privatized.

Suggested Citation

  • S. I. Dolgikh & B. S. Potanin, 2023. "The Impact of Public Administration on the Efficiency of Russian Firms," Studies on Russian Economic Development, Springer, vol. 34(1), pages 59-67, February.
    • Handle: RePEc:spr:sorede:v:34:y:2023:i:1:d:10.1134_s1075700723010045
    DOI: 10.1134/S1075700723010045
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    References listed on IDEAS

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