Privatization Methods and Productivity Effects in Romanian Industrial Enterprises

Authors

John S. Earle, W.E. Upjohn Institute for Employment ResearchFollow
Álmos Telegdy, Budapest University of Economic SciencesFollow

Publication Date

4-1-2002

Series

Upjohn Institute Working Paper No. 02-81

**Published Version**

In Journal of Comparative Economics 30: 657-682

DOI

10.17848/wp02-81

Abstract

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.

Issue Date

Revised April 2002

Sponsorship

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.

Subject Areas

INTERNATIONAL ISSUES; International labor comparisons; Transition economies