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Measuring the Causal Effect of Privatization on Firm Performance

Author

Listed:
  • Jan Hagemejer

    (National Bank of Poland; Faculty of Economic Sciences, University of Warsaw)

  • Joanna Tyrowicz

    (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)

  • Jan Svejnar

    (Columbia University)

Abstract

Despite an apparent consensus in the literature that privatization leads to increased productivity and profitability of firms, the problem of endogeneity bias is profound and has been emphasized in a number of meta-analyses. We propose a new method to address the endogeneity bias and apply it to a universe of Polish medium and large firms over 1995-2009. Unlike some previous studies we find that improvement in firm performance is a rare phenomenon, which suggests that the endogeneity bias could have been indeed large.

Suggested Citation

  • Jan Hagemejer & Joanna Tyrowicz & Jan Svejnar, 2014. "Measuring the Causal Effect of Privatization on Firm Performance," Working Papers 2014-14, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2014-14
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP131.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Mai, Nhat Chi, 2017. "Ownership concentration, state ownership and firm performance: Empirical evidence from the Vietnamese stock market," OSF Preprints zgvsw, Center for Open Science.

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    More about this item

    Keywords

    privatization; firm performance; endogeneity bias;
    All these keywords.

    JEL classification:

    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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