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Ownership, business environment and productivity change

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  • Asaftei, Gabriel
  • Kumbhakar, Subal C.
  • Mantescu, Dorin

Abstract

Using a panel data of manufacturing firms in Romania (1995-2003) we investigate productivity changes due to ownership and business environment. Our results show that privatization by itself is not sufficient for improving the productivity of enterprises. Fully private enterprises perform better than state-owned enterprises in highly competitive sectors but not in lowly competitive sectors. The privatized enterprises in which the state retained a minority stake are performing no better than the majority-owned state enterprises. The significant correlation of institutional proxies with productivity growth rates shows that privatization and institutional restructure are complements rather than substitutes in improving the performance of enterprises. Journal of Comparative Economics 36 (3) (2008) 498-509.

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  • Asaftei, Gabriel & Kumbhakar, Subal C. & Mantescu, Dorin, 2008. "Ownership, business environment and productivity change," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 498-509, September.
    • Handle: RePEc:eee:jcecon:v:36:y:2008:i:3:p:498-509
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    Cited by:

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    3. Ghulam, Yaseen, 2017. "Long-run performance of an industry after broader reforms including privatization," Research in International Business and Finance, Elsevier, vol. 42(C), pages 745-768.
    4. Tsekouras, Kostas & Chatzistamoulou, Nikos & Kounetas, Kostas, 2017. "Productive performance, technology heterogeneity and hierarchies: Who to compare with whom," International Journal of Production Economics, Elsevier, vol. 193(C), pages 465-478.
    5. Prema-chandra Athukorala & Hai Thanh Nguyen, 2022. "Manufacturing productivity and firm ownership in a transition economy: Analytical issues and evidence from Vietnam," Departmental Working Papers 2022-09, The Australian National University, Arndt-Corden Department of Economics.
    6. Ghulam, Yaseen & Jaffry, Shabbar, 2015. "Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation," Omega, Elsevier, vol. 54(C), pages 101-115.
    7. Ghulam, Yaseen, 2021. "Institutions and firms’ technological changes and productivity growth," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    8. Le, Manh-Duc & Pieri, Fabio & Zaninotto, Enrico, 2019. "From central planning towards a market economy: The role of ownership and competition in Vietnamese firms’ productivity," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 693-716.
    9. Ichiro Iwasaki & Satoshi Mizobata, 2020. "Ownership Concentration and Firm Performance in European Emerging Economies: A Meta-Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(1), pages 32-67, January.
    10. Musa Abdu & Adamu Jibir & Salihu Abdullahi & Aisha Adamu Hassan, 2021. "Drivers of manufacturing firms’ productivity: a micro-perspective to industrialization in Nigeria," SN Business & Economics, Springer, vol. 1(2), pages 1-17, February.
    11. Tsionas, Mike G., 2023. "Clustering and meta-envelopment in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 304(2), pages 763-778.

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