IDEAS home Printed from https://ideas.repec.org/p/cvs/starer/98-14.html
   My bibliography  Save this paper

Why Ownership Matters?: Politicization and Entrepreneurship in the Restructuring of Enterprises in Central Europe

Author

Listed:
  • Frydman, R.
  • Hessel, M.
  • Rapaczynski, A.

Abstract

This paper, base on a study of mid-sized firms in the Czech Republic, Hungary, and Poland, examines the sources of performance differences between state and privatized firms, particularly those that may be due to politicization and differences in the degree of entreprenurship. The paper presents empirical evidence that politicization of decision making is responsible for the observed inefficiencies in the cost behavior of state enterprises, but does not explain their inferior revenue performance, which is independent of the degree of state involvement.

Suggested Citation

  • Frydman, R. & Hessel, M. & Rapaczynski, A., 1998. "Why Ownership Matters?: Politicization and Entrepreneurship in the Restructuring of Enterprises in Central Europe," Working Papers 98-14, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:98-14
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Sherwin Rosen, 1997. "Austrian and Neoclassical Economics: Any Gains from Trade?," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 139-152, Fall.
    2. Frydman, Roman & Gray, Cheryl & Hessel, Marek & Rapaczynski, Andrzej, 1997. "Private Ownership and Corporate Performance: Some Lessons from Transition Economies," Working Papers 97-28, C.V. Starr Center for Applied Economics, New York University.
    3. Barberis, Nicholas & Maxim Boycko & Andrei Shleifer & Natalia Tsukanova, 1996. "How Does Privatization Work? Evidence from the Russian Shops," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 764-790, August.
    4. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    5. Frydman, Roman & Gray, Cheryl W. & Hessel, Marek & Rapaczynski, Andrzej, 1997. "Private ownership and corporate performance : some lessons from transition economies," Policy Research Working Paper Series 1830, The World Bank.
    6. Megginson, William L & Nash, Robert C & van Randenborgh, Matthias, 1994. "The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis," Journal of Finance, American Finance Association, vol. 49(2), pages 403-452, June.
    7. Rafael La Porta & Florencio López-de-Silanes, 1999. "The Benefits of Privatization: Evidence from Mexico," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1193-1242.
    8. Brian Pinto & Marek Belka & Stefan Krajewski, 1993. "Transforming State Enterprises in Poland: Evidence on Adjustment by Manufacturing Firms," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1), pages 213-270.
    9. Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 995-1025.
    10. Pinto, Brian & Belka, Marek & Krajewski, Stefan, 1993. "Transforming state enterprises in Poland : macroeconomic evidence on adjustment," Policy Research Working Paper Series 1101, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in France," MPRA Paper 27056, University Library of Munich, Germany.
    2. Tatahi, Motasam, 2010. "Enterprise performance, privatization and the role of ownership in Austria," MPRA Paper 27053, University Library of Munich, Germany.
    3. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in Poland," MPRA Paper 27062, University Library of Munich, Germany.
    4. Tatahi, Motasam, 2010. "Enterprise performance, privatization and the role of ownership in Bulgaria," MPRA Paper 27054, University Library of Munich, Germany.
    5. Meyer, Andrew & Pac, Grzegorz, 2013. "Environmental performance of state-owned and privatized eastern European energy utilities," Energy Economics, Elsevier, vol. 36(C), pages 205-214.
    6. Md. Asif Nawaz, 2021. "Impact of Specialization, Ownership Structure, and Size on Cost and Profit Efficiency of US Commercial and Savings Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(3), pages 1-4.
    7. Alan Bevan & Saul Estrin & Mark E. Schaffer, 1999. "Determinants of Enterprise Performance during Transition," CERT Discussion Papers 9903, Centre for Economic Reform and Transformation, Heriot Watt University.
    8. Tatahi, Motasam, 2010. "Enterprise performance, privatization and the role of ownership in Belgium," MPRA Paper 27051, University Library of Munich, Germany.
    9. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in the Netherlands," MPRA Paper 27067, University Library of Munich, Germany.
    10. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in Italy," MPRA Paper 27059, University Library of Munich, Germany.
    11. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in Norway," MPRA Paper 27060, University Library of Munich, Germany.
    12. Frydman, Roman & Gray, Cheryl & Hessel, Marek P. & Rapaczynski, Andrzej, 1998. "When Does Privatization Work? The Impact of Private Ownership on Corporate Performance in the Transition Economies," Working Papers 98-32, C.V. Starr Center for Applied Economics, New York University.
    13. Motasam Tatahi, 2013. "Enterprise Performance, Privatization and the Role of Ownership in Finland," Journal of Economics and Behavioral Studies, AMH International, vol. 5(3), pages 122-135.
    14. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in the UK," MPRA Paper 27065, University Library of Munich, Germany.
    15. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in Portugal," MPRA Paper 27063, University Library of Munich, Germany.
    16. Tatahi, Motasam, 2010. "Enterprise performance, privatization and the role of ownership in Germany," MPRA Paper 27057, University Library of Munich, Germany.
    17. Jana Fidrmucova, 2000. "Channels of Restructuring in Privatized Czech Companies," Econometric Society World Congress 2000 Contributed Papers 1358, Econometric Society.
    18. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in Sweden," MPRA Paper 27066, University Library of Munich, Germany.
    19. Tatahi, Motasam, 2010. "Enterprise Performance, Privatization and the Role of Ownership in Denmark," MPRA Paper 27064, University Library of Munich, Germany.
    20. Tatahi, Motasam, 2010. "Enterprise performance, privatization and the role of ownership in Finland," MPRA Paper 27055, University Library of Munich, Germany.
    21. Motasam Tatahi, 2012. "Enterprise Performance, Privatization and the Role of Ownership in Bulgaria," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(2), pages 131-153.
    22. Zhao, Lexin & Fang, Hongsheng, 2022. "Investment incentives and the relative demand for skilled labor: Evidence from accelerated depreciation policies in China," China Economic Review, Elsevier, vol. 73(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simeon Djankov, 1999. "Ownership Structure and Enterprise Restructuring in Six Newly Independent States," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 41(1), pages 75-95, April.
    2. Kikeri, Sunita & Nellis, John, 2002. "Privatization in competitive sectors : the record to date," Policy Research Working Paper Series 2860, The World Bank.
    3. Frydman, Roman & Gray, Cheryl & Hessel, Marek P. & Rapaczynski, Andrzej, 1998. "When Does Privatization Work? The Impact of Private Ownership on Corporate Performance in the Transition Economies," Working Papers 98-32, C.V. Starr Center for Applied Economics, New York University.
    4. Dobrodey Vladimir & Gimadi Ilya & Perevalov Yuri, 2001. "The Impact of Privatisation on the Performance of Medium and Large Industrial Enterprises," EERC Working Paper Series 2k/01e, EERC Research Network, Russia and CIS.
    5. Andrei Shleifer, 1998. "State versus Private Ownership," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 133-150, Fall.
    6. Schnytzer, Adi & Andreyeva, Tatiana, 2002. "Company performance in Ukraine: is this a market economy?," Economic Systems, Elsevier, vol. 26(2), pages 83-98, June.
    7. Irina Akimova & Gerhard Schwödiauer, 1999. "Restructuring of Ukrainian Enterprises after Privatization: Does Ownership Structure Matter?," Industrial Organization 9903003, University Library of Munich, Germany.
    8. Marwan Mohamed Abdeldayem & Saeed Hameed AL Dulaimi, 2019. "Privatisation as a Worldwide Tool of Economic Reform: A Literature Review," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 4(2), pages 66-84, June.
    9. Estrin, Saul & Rosevear, Adam, 1999. "Enterprise performance and ownership: The case of Ukraine," European Economic Review, Elsevier, vol. 43(4-6), pages 1125-1136, April.
    10. Frydman, R. & Hessel, M. & Rapaczynski, A., 2000. "Why Ownership Matters? Entrepreneurship and the Restructuring of Enterprises in Central Europe," Working Papers 00-03, C.V. Starr Center for Applied Economics, New York University.
    11. Yu, Wusheng & Jensen, Trine Vig, 2003. "Trade Preferences, WTO Negotiations and the LDCs: the case of the "Everything But Arms" Initiative," Conference papers 331124, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Yurii Perevalov & Ilya Gimadii & Vladimir Dobrodei, 2000. "Does Privatisation Improve Performance of Industrial Enterprises? Empirical Evidence from Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 12(3), pages 337-363.
    13. Alan Bevan & Saul Estrin & Mark E. Schaffer, 1999. "Determinants of Enterprise Performance during Transition," CERT Discussion Papers 9903, Centre for Economic Reform and Transformation, Heriot Watt University.
    14. Debande, Olivier & Friebel, Guido, 2004. "A positive theory of give-away privatization," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1309-1325, November.
    15. Claessens,Constantijn A. & Djankov, Simeon, 1998. "Politicians and firms in seven central and eastern European countries," Policy Research Working Paper Series 1954, The World Bank.
    16. Nandini Gupta & John C. Ham & Jan Svejnar, 2000. "Priorities and Sequencing in Privatization: Theory and Evidence from the Czech Republic," William Davidson Institute Working Papers Series 323, William Davidson Institute at the University of Michigan.
    17. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    18. John S. Earle, 1999. "Post-Privatisation Ownership Structure and Productivity in Russian Industrial Enterprises," Working Papers 1999.19, Fondazione Eni Enrico Mattei.
    19. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 2002. "Government Ownership of Banks," Journal of Finance, American Finance Association, vol. 57(1), pages 265-301, February.
    20. Aaron Tornell, 1999. "Privatizing the Privatized," NBER Working Papers 7206, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    OWNERSHIP ; PRIVATIZATION ; HUMAN CAPITAL;
    All these keywords.

    JEL classification:

    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
    • P12 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Enterprises
    • P17 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Performance and Prospects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cvs:starer:98-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anne Stubing (email available below). General contact details of provider: https://edirc.repec.org/data/aenyuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.