IDEAS home Printed from https://ideas.repec.org/p/upj/weupjo/jse20091.html
   My bibliography  Save this paper

Helping Hand or Grabbing hand? State Bureaucracy and Privatization Effectiveness

Author

Abstract

Why have economic reforms aimed at reducing the role of the state been successful in some cases but not others? Are reform failures the consequence of leviathan states that hinder private economic activity, or of weak states unable to implement policies effectively and provide a supportive institutional environment? We explore these questions in a study of privatization in postcommunist Russia. Taking advantage of large regional variation in the size of public administrations, and employing a multilevel research design that controls for preprivatization selection in the estimation of regional privatization effects, we examine the relationship between state bureaucracy and the impact of privatization on firm productivity. We find that privatization is more effective in regions with relatively large bureaucracies. Our analysis suggests that this effect is driven by the impact of bureaucracy on the postprivatization business environment, with better institutional support and less corruption when bureaucracies are large.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • J. David Brown & John S. Earle & Scott G. Gellbach, "undated". "Helping Hand or Grabbing hand? State Bureaucracy and Privatization Effectiveness," Upjohn Working Papers and Journal Articles jse20091, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:jse20091
    Note: Appears in American Political Science Review 103(2): 264-283
    as

    Download full text from publisher

    File URL: http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=5832024
    Download Restriction: All working papers are copyrighted.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Frye, Timothy & Zhuravskaya, Ekaterina, 2000. "Rackets, Regulation, and the Rule of Law," Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 478-502, October.
    2. J. David Brown & John S. Earle & Almos Telegdy, 2006. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 61-99, February.
    3. D. Reisman, 1999. "Russia's Tax Crisis: Explaining Falling Revenues in a Transitional Economy," Economics and Politics, Wiley Blackwell, vol. 11(2), pages 145-169, July.
    4. Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
    5. Jeffrey B Miller & Stoyan Tenev, 2007. "On the Role of Government in Transition: The Experiences of China and Russia Compared," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(4), pages 543-571, December.
    6. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    7. Olivier Jean Blanchard & Maxim Boycko & Marek Dabrowski & Rudiger Dornbusch & Richard Layard & Andrei Shleifer, 1993. "Post-Communist Reform: Pain and Progress," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262023628, January.
    8. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    9. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    10. Achen, Christopher H., 2005. "Two-Step Hierarchical Estimation: Beyond Regression Analysis," Political Analysis, Cambridge University Press, vol. 13(04), pages 447-456, September.
    11. Lewis, Jeffrey B. & Linzer, Drew A., 2005. "Estimating Regression Models in Which the Dependent Variable Is Based on Estimates," Political Analysis, Cambridge University Press, vol. 13(04), pages 345-364, September.
    12. J. David Brown & John S. Earle & Almos Telegdy, "undated". "The Productivity Effects of Privatization: Longitudnal Estimates for Hungary, romania, Russia, and Ukraine," Upjohn Working Papers and Journal Articles jse20063, W.E. Upjohn Institute for Employment Research.
    13. Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W., 1997. "Privatizing Russia," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522284, January.
    14. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
    15. Anna Grzymala-Busse & Pauline Jones Luong, 2002. "Reconceptualizing the State: Lessons from Post-Communism," Politics & Society, , vol. 30(4), pages 529-554, December.
    16. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cull, Robert & Xu, Lixin Colin & Yang, Xi & Zhou, Li-An & Zhu, Tian, 2017. "Market facilitation by local government and firm efficiency: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 460-480.
    2. Bruno, Randolph & Bytchkova, Maria & Estrin, Saul, 2011. "Institutions And Entry: A Cross-Regional Analysis In Russia," CEPR Discussion Papers 8283, C.E.P.R. Discussion Papers.
    3. Irina Denisova & Markus Eller & Timothy Frye & Ekaterina Zhuravskaya, 2007. "Who Wants to Revise Privatization and Why? Evidence from 28 Post-Communist Countries," Working Papers w0105, Center for Economic and Financial Research (CEFIR).
    4. Brown, David J. & Earle, John S. & Telegdy, Almos, 2016. "Where does privatization work? Understanding the heterogeneity in estimated firm performance effects," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 329-362.
    5. John S. Earle & Scott Gehlbach, 2010. ""Mass Privatisation and the Post-Communist Mortality Crisis": Is There Really a Relationship?," Upjohn Working Papers and Journal Articles 10-162, W.E. Upjohn Institute for Employment Research.
    6. Duvanova, Dinissa, 2014. "Economic Regulations, Red Tape, and Bureaucratic Corruption in Post-Communist Economies," World Development, Elsevier, vol. 59(C), pages 298-312.
    7. Alexander Libman, 2012. "Democracy, size of bureaucracy, and economic growth: evidence from Russian regions," Empirical Economics, Springer, vol. 43(3), pages 1321-1352, December.
    8. Marina Dodlova, 2013. "Political Accountability and Real Authority of Government Bureaucracy," CESifo Working Paper Series 4443, CESifo Group Munich.
    9. Earle, John S. & Gehlbach, Scott, 2014. "The Productivity Consequences of Political Turnover: Firm-Level Evidence from Ukraine's Orange Revolution," IZA Discussion Papers 8510, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    transition economies; privatisation; employment effects;

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies

    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:upj:weupjo:jse20091. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/upjohus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.