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The Productivity Effects of Privatization in Ukraine: Estimates from Comprehensive Manufacturing Firm Panel Data, 1989–2005

Author

Listed:
  • J. David Brown

    (Heriot-Watt University)

  • John S. Earle

    (W.E. Upjohn Institute for Employment Research and Central European University)

Abstract

This paper estimates the effect of domestic and foreign privatization on multifactor productivity (MFP) using long panel data for nearly the universe of initially state-owned manufacturing firms in Ukraine. The longitudinal dimension of the data is used to measure and control for pre-privatization selection bias and to estimate long-run impacts. The data imply steadily increasing MFP as a result of domestic privatization, reaching about 25 percent relative to state-owned firms after six years. Until recently, Ukraine has had relatively few cases of privatization to foreign investors, and estimates of the MFP impact are more sensitive to controls for selection bias, but the results suggest foreign privatization produces a productivity advantage of about 40 percent in 2004–2005.

Suggested Citation

  • J. David Brown & John S. Earle, 2007. "The Productivity Effects of Privatization in Ukraine: Estimates from Comprehensive Manufacturing Firm Panel Data, 1989–2005," Upjohn Working Papers 07-137, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:07-137
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    References listed on IDEAS

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    Cited by:

    1. Umut Kılın�, 2014. "Productivity and factor misallocation in Ukraine: the role of state ownership," Post-Communist Economies, Taylor & Francis Journals, vol. 26(3), pages 359-375, September.
    2. Zsuzsa Munkácsi, 2009. "Who exports in Hungary? Export concentration by corporate size and foreign ownership, and the effect of foreign ownership on export orientation," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 4(2), pages 22-33, July.

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    More about this item

    Keywords

    productivity; privatization; selection bias; foreign ownership; Ukraine;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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