Upjohn Institute Working Paper No. 02-81
Journal of Comparative Economics 30 (2002): 657-682
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 imply- ing 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.
Revised: April 2002
Early research and data gathering related to this paper partially supported by the World Bank; more recent work and data collection supported by the European Commission's Phare ACE Programme 1998
INTERNATIONAL ISSUES; International labor comparisons; Transition economies
Earle, John S., and Álmos Telegdy. 2002. "Privatization Methods and Productivity Effects in Romanian Industrial Enterprises." Upjohn Institute Working Paper No. 02-81. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. http://dx.doi.org/10.17848/wp02-81