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The economic performance of state-owned enterprises in Central and Eastern Europe

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  • Katarzyna Szarzec
  • Wanda Nowara

Abstract

This article explores the economic performance of state ownership in the largest non-financial enterprises operating in 13 post-socialist Central and Eastern European (CEE) countries over the period 2007–2013. The largest state-owned enterprises (SOEs) are selected based on the ‘Coface – 500 Top Companies in CEE’ list in 2013. Of these 500 enterprises, 69 were identified as state-owned. All originated in the socialist period. The majority of them are from Poland and Ukraine. SOEs hold a dominant position in energy supply, the oil and gas sector, and transport. We find that the persistence of state ownership in post-socialist countries is caused by incomplete privatisation and the presence of SOEs within strategic sectors. The economic performance of the largest state-owned companies is, on average, comparable to their private counterparts.

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  • Katarzyna Szarzec & Wanda Nowara, 2017. "The economic performance of state-owned enterprises in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 29(3), pages 375-391, July.
    • Handle: RePEc:taf:pocoec:v:29:y:2017:i:3:p:375-391
    DOI: 10.1080/14631377.2017.1316546
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    References listed on IDEAS

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    1. Karolyi, G. Andrew & Liao, Rose C., 2017. "State capitalism's global reach: Evidence from foreign acquisitions by state-owned companies," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 367-391.
    2. Hans Christiansen & Yunhee Kim, 2014. "State-Invested Enterprises in the Global Marketplace: Implications for a Level Playing Field," OECD Corporate Governance Working Papers 14, OECD Publishing.
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    Cited by:

    1. Piotr Matuszak & Katarzyna Szarzec, 2019. "The Scale and Financial Performance of State-Owned Enterprises in the CEE Region," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(4), pages 549-570, December.
    2. Yixuan Duan & Min Guo & Yixuan Huang, 2022. "Leverage of Local State-Owned Enterprises, Implicit Contingent Liabilities of Government and Economic Growth," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    3. Matuszak Piotr, 2020. "What determines the scale of state ownership in enterprises? Some evidence from post-socialist countries," Economics and Business Review, Sciendo, vol. 6(4), pages 95-117, December.
    4. Bartosz Totleben & Katarzyna Szarzec & Andreas Kardziejonek, 2019. "Rent-seeking by politicians in state-owned enterprises," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(4), pages 515-529, December.
    5. Szarzec, Katarzyna & Dombi, Ákos & Matuszak, Piotr, 2021. "State-owned enterprises and economic growth: Evidence from the post-Lehman period," Economic Modelling, Elsevier, vol. 99(C).
    6. Andal, Emmanuel Genesis T., 2022. "Industrialisation, state-related institutions, and the speed of energy substitution: The case in Europe," Energy, Elsevier, vol. 239(PC).
    7. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2022. "Ownership structure and firm performance in emerging markets: A comparative meta-analysis of East European EU member states, Russia and China," Economic Systems, Elsevier, vol. 46(2).
    8. Jie Sun & Lewis Makosa & Jinkun Yang & Fangyuan Yin & Moses Jachi & Wellington Garikai Bonga, 2021. "Externalities of economic sanctions on performance of intra‐industry non‐sanctioned firms: Evidence from Zimbabwe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(5), pages 643-664, November.
    9. Katarzyna Szarzec, 2023. "Przedsiębiorstwa państwowe we współczesnej gospodarce – cele i uwarunkowania efektywności działania," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 3, pages 295-314.
    10. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Kim, Chul Ju & Mortha, Aline, 2019. "A Comprehensive Evaluation Framework on the Economic Performance of State-Owned Enterprises," ADBI Working Papers 949, Asian Development Bank Institute.
    11. Tong, Tong & Chen, Xiaoyue & Singh, Tarlok & Li, Bin, 2022. "Corporate governance and the outward foreign direct investment: Firm-level evidence from China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 962-980.
    12. Clò, Stefano & Florio, Massimo & Rentocchini, Francesco, 2020. "Firm ownership, quality of government and innovation: Evidence from patenting in the telecommunication industry," Research Policy, Elsevier, vol. 49(5).
    13. Matuszak, Piotr & Kabaciński, Bartosz, 2021. "Non-commercial goals and financial performance of state-owned enterprises – some evidence from the electricity sector in the EU countries," Journal of Comparative Economics, Elsevier, vol. 49(4), pages 1068-1087.

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