IDEAS home Printed from https://ideas.repec.org/a/vrs/ecothe/v59y2021i1p1-22n3.html
   My bibliography  Save this article

Restructuring of State Enterprises as a Prerequisite for Economic Growth in the Republic of Serbia

Author

Listed:
  • Jakopin Edvard

    (University “Union - Nikola Tesla”, Faculty of Economy and Finances, Republic of Serbia and Statistical Office of theRepublic of Serbia)

  • Gračanac Aleksandar

    (University “Union - Nikola Tesla”, Faculty of Entrepreneurial Business and Real Estate Management, Republic of Serbia)

  • Aničić Jugoslav

    (University “Union - Nikola Tesla”, Faculty of Economy and Finances, Republic of Serbia)

Abstract

This study of the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While the “healthy” enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency, but also for the purpose of harmonization with the ethical and deontological requirements.

Suggested Citation

  • Jakopin Edvard & Gračanac Aleksandar & Aničić Jugoslav, 2021. "Restructuring of State Enterprises as a Prerequisite for Economic Growth in the Republic of Serbia," Economic Themes, Sciendo, vol. 59(1), pages 1-22, March.
    • Handle: RePEc:vrs:ecothe:v:59:y:2021:i:1:p:1-22:n:3
    DOI: 10.2478/ethemes-2021-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/ethemes-2021-0001
    Download Restriction: no
    File URL: https://libkey.io/10.2478/ethemes-2021-0001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kun Tracy Wang & Greg Shailer, 2018. "Does Ownership Identity Matter? A Meta‐analysis of Research on Firm Financial Performance in Relation to Government versus Private Ownership," Abacus, Accounting Foundation, University of Sydney, vol. 54(1), pages 1-35, March.
    2. Talis Putnins, 2015. "Economics of State-Owned Enterprises," Published Paper Series 2015-3, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    3. Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009. "The Effects of Privatization and Ownership in Transition Economies," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 699-728, September.
    4. Hans Christiansen, 2011. "The Size and Composition of the SOE Sector in OECD Countries," OECD Corporate Governance Working Papers 5, OECD Publishing.
    5. Ann Harrison & Marshall Meyer & Peichun Wang & Linda Zhao & Minyuan Zhao, 2019. "Can a Tiger Change Its Stripes? Reform of Chinese State-Owned Enterprises in the Penumbra of the State," NBER Working Papers 25475, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mr. Jacques A Miniane & Ezequiel Cabezon & Mr. Sebastian Weber & Christine J. Richmond & Ms. Dora Benedek & Mr. James Roaf & Mr. Francisco J Parodi & Mr. Peter Dohlman & Rima Turk & Bobana Cegar & Mic, 2019. "Reassessing the Role of State-Owned Enterprises in Central, Eastern and Southeastern Europe," IMF Departmental Papers / Policy Papers 2019/010, International Monetary Fund.
    2. Polterovich, Victor, 2012. "Приватизация и рациональная структура собственности (Privatizatsiya i ratsional’naya struktura sobstvennosti) [Privatization and the Rational Ownership Structure]," MPRA Paper 41069, University Library of Munich, Germany.
    3. 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).
    4. Olschewski, Sebastian & Jakob, Lukas & Schmidt, Ulrich, 2023. "Investor preferences for positive social externalities and state-owned enterprises’ facilitated access to capital," Open Access Publications from Kiel Institute for the World Economy 266914, Kiel Institute for the World Economy (IfW Kiel).
    5. Balázs Égert & Antoine Goujard, 2014. "Strengthening Competition in Poland," OECD Economics Department Working Papers 1125, OECD Publishing.
    6. 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.
    7. Katarzyna Szarzec & Wanda Nowara & Mirosława Żurek, 2017. "Forma własności a wyniki ekonomiczne największych przedsiębiorstw krajów Europy Środkowo-Wschodniej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 89-114.
    8. Francesca Di Pillo & Nathan Levialdi & Laura Marchegiani, 2020. "The Investments in Energy Distribution Networks: Does Company Ownership Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 41-49.
    9. Del Bo, Chiara D. & Ferraris, Matteo & Florio, Massimo, 2017. "Governments in the market for corporate control: Evidence from M&A deals involving state-owned enterprises," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 89-109.
    10. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    11. Muhammad Sajjad Hussain & Muhammad Muhaizam Bin Musa Musa & Abdelnaser Omran Ali, 2018. "The Impact of Private Ownership Structure on Risk Taking by Pakistani Banks: An Empirical Study AbstractThe financial crisis of 2007-09 was converted the focus of researchers and regulators toward ban," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(3), pages :325-337, September.
    12. Denisova, Irina & Eller, Markus & Frye, Timothy & Zhuravskaya, Ekaterina, 2012. "Everyone hates privatization, but why? Survey evidence from 28 post-communist countries," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 44-61.
    13. David Greenaway & Alessandra Guariglia & Zhihong Yu, 2014. "The more the better? Foreign ownership and corporate performance in China," The European Journal of Finance, Taylor & Francis Journals, vol. 20(7-9), pages 681-702, September.
    14. Suman Banerjee & Saul Estrin & Sarmistha Pal, 2022. "Corporate disclosure, compliance and consequences: evidence from Russia," The European Journal of Finance, Taylor & Francis Journals, vol. 28(17), pages 1770-1802, November.
    15. Baumöhl, Eduard & Iwasaki, Ichiro & Kočenda, Evžen, 2019. "Institutions and determinants of firm survival in European emerging markets," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 431-453.
    16. Kudrin, A. & Gurvich, E., 2015. "Government Stimulus or Economic Incentives?," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 179-186.
    17. Estrin, Saul & Mickiewicz, Tomasz, 2010. "Entrepreneurship in Transition Economies: The Role of Institutions and Generational Change," IZA Discussion Papers 4805, Institute of Labor Economics (IZA).
    18. Saul Estrin, 2017. "Foreign direct investment and employment in transition economies," IZA World of Labor, Institute of Labor Economics (IZA), pages 330-330, January.
    19. Crivelli, Ernesto, 2013. "Fiscal impact of privatization revisited: The role of tax revenues in transition economies," Economic Systems, Elsevier, vol. 37(2), pages 217-232.
    20. Chen, Ruiyuan & El Ghoul, Sadok & Guedhami, Omrane & Wang, He, 2017. "Do state and foreign ownership affect investment efficiency? Evidence from privatizations," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 408-421.

    More about this item

    Keywords

    state-owned enterprises; structural changes; qualitative business performance; modes of restructuring and reforming state-owned enterprises;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecothe:v:59:y:2021:i:1:p:1-22:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.