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Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence

Author

Listed:
  • Herrera Dappe,Matias
  • Musacchio,Aldo
  • Pan,Carolina
  • Semikolenova,Yadviga Viktorivna
  • Turkgulu,Burak
  • Barboza,Jonathan

Abstract

This paper examines the performance of infrastructure companies owned by the state, using thenewly created World Bank Database of Infrastructure State-Owned Enterprises (SOEs). The data cover 19 countriesand 135 SOEs between 2000 and 2018. The analysis reveals that infrastructure SOEs are large and have weak financialperformance that generates significant fiscal risk. The paper introduces new measures of financial performance netof fiscal transfers and examines previously uncovered patterns of subsidies by sector. It examines the effect ofstate ownership by comparing the firms in the database with hundreds of comparable private firms, using coarsened exactmatching. The findings show that relative to comparable private firms, infrastructure SOEs are less efficient,represent a larger share of gross domestic product, have larger liabilities as a share of gross domestic product andlarger employment costs as a share of revenues, and yield lower returns on assets.

Suggested Citation

  • Herrera Dappe,Matias & Musacchio,Aldo & Pan,Carolina & Semikolenova,Yadviga Viktorivna & Turkgulu,Burak & Barboza,Jonathan, 2022. "Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence," Policy Research Working Paper Series 9969, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9969
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    References listed on IDEAS

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    9. Musacchio, Aldo & Pineda, Emilio & Huber, John & Jara, Mauricio & Kim, Hyungon & Ter-Minassian, Teresa & Wagner, Rodrigo, 2019. "Fixing State-Owned Enterprises: New Policy Solutions to Old Problems," IDB Publications (Books), Inter-American Development Bank, number 9965.
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    Cited by:

    1. Cont Walter & Navajas Ferenando & Puig Julián, 2025. "Sectores, mercados y control corporativo en el desempeño de las empresas públicas en América Latina y el Caribe," Asociación Argentina de Economía Política: Working Papers 4787, Asociación Argentina de Economía Política.
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    3. Herrera Dappe, Matías & Musacchio, Aldo & Turkgulu, Burak & Pan, Carolina & Barboza, Jonathan & Semikolenova, Yadviga, 2024. "State-owned enterprises as countercyclical instruments: Quasi-experimental evidence from the infrastructure sector," World Development, Elsevier, vol. 179(C).

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