TY - JOUR
T1 - The Effects of Privatization on Productive Efficiency
T2 - Evidence from the Baltic Republics
AU - Jones, Derek C.
AU - Mygind, Niels
PY - 2000
Y1 - 2000
N2 - By using new and unusual data sets for large samples of firms in Estonia, Latvia and Lithuania we find that, since privatization, diverse patterns of enterprise ownership have emerged and ownership configurations are quite dynamic. To test competing theories on the productivity effects of alternative ownership structures, identical cross sectional production functions specifications are estimated for each country for varying years during 1993 1996. While the effects of private ownership upon productivity are found to vary considerably over time and across countries, productivity effects are always found to be either zero or positive, thus providing partial support for the hypothesis that state ownership is less efficient than private ownership. Findings are mixed concerning hypotheses on the effects of particular ownership structures. Often (e.g. for Lithuania) estimates indicate that all forms of private ownership have zero productivity effects. However, some estimates for Estonia provide support for the mainstream hypothesis that outside (and especially foreign) ownership is preferred to insider ownership. But in other estimates (again for Estonia) majority ownership by employees is found to deliver better business performance than majority ownership by managers (thus refuting the hypothesis that the preferred form of insider ownership is ownership by managers).
AB - By using new and unusual data sets for large samples of firms in Estonia, Latvia and Lithuania we find that, since privatization, diverse patterns of enterprise ownership have emerged and ownership configurations are quite dynamic. To test competing theories on the productivity effects of alternative ownership structures, identical cross sectional production functions specifications are estimated for each country for varying years during 1993 1996. While the effects of private ownership upon productivity are found to vary considerably over time and across countries, productivity effects are always found to be either zero or positive, thus providing partial support for the hypothesis that state ownership is less efficient than private ownership. Findings are mixed concerning hypotheses on the effects of particular ownership structures. Often (e.g. for Lithuania) estimates indicate that all forms of private ownership have zero productivity effects. However, some estimates for Estonia provide support for the mainstream hypothesis that outside (and especially foreign) ownership is preferred to insider ownership. But in other estimates (again for Estonia) majority ownership by employees is found to deliver better business performance than majority ownership by managers (thus refuting the hypothesis that the preferred form of insider ownership is ownership by managers).
KW - Produktivitet
KW - Privatisering
KW - Baltiske lande
U2 - 10.1111/1467-8292.00147
DO - 10.1111/1467-8292.00147
M3 - Journal article
SN - 1370-4788
VL - 71
SP - 415
EP - 439
JO - Annals of Public and Cooperative Economics
JF - Annals of Public and Cooperative Economics
IS - 3
ER -