State or Private Ownership? A Survey of Empirical Studies

Open access

State or Private Ownership? A Survey of Empirical Studies

This paper focuses on property rights and performance of enterprises. The objective of this paper is to summarize existing knowledge from empirical studies dealing with the question of whether private property and privatization of enterprises encourage firms to increase their performance measured as growth of profitability, labor productivity, investments, costs effectiveness, etc. On the basis of empirical studies, it is also determined what the influence of institutional frameworks of property rights and privatization is on the firm performance. The first part of the paper reviews results of studies on the non-transition economies privatized by 1990. The second one evaluates the impact of private ownership on performance of enterprises from transition economies of Central and Eastern Europe, and the Former Soviet Union. The results of the studies suggest that private ownership is an important but not sufficient determinant of firm prosperity, subsequently resulting in overall rise of wealth of nations. The positive impact of private ownership on economic performance can occur only in an appropriate institutional environment with relevant legal standards (righteous and enforceable contracts, the protection of shareholders and creditors, adequate banking system, functioning bankruptcy courts, capital market supervision, etc.).

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • BARBERIS N. et al. (1996). How Does Privatization Work? Evidence from the Russian Shops. Journal of Political Economy Vol. 104 August 1996 pp. 764-790.

  • BOARDMAN A. E. A. R. VINING. (1989). Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private Mixed and State-Owned Enterprises. Journal of Law and Economics Vol. XXXII April 1989 pp. 1-33.

  • BOUBAKRI N. J. C. COSSET. (1998). The Financial and Operating Performance of Newly Privatized Firms: Evidence from Developing Countries. Journal of Finance Vol. 53 June 1998 pp. 1081-1110.

  • BOUBAKRI N. J. C. COSSET. (2002). Does Privatization Meet the Expectations in Developing Countries? A Survey and Some Evidence from Africa. Journal of African Economies Vol. 11 February 2002 pp. 111-140.

  • CARLIN W. J. V. REENEN T. WOLFE. (1995). Enterprise Restructuring in Early Transition: The Case of Study Evidence from Central and Eastern Europe. Economics of Transition Vol. 3 Issue 4 December 1995 pp. 427-458.

  • CHANG H. ed. (2007). Institutional change and economic development. New York: United Nations University Press.

  • CHANG H. A. SINGH. (1997). Can large firms be run efficiently without being bureaucratic? Journal of International Development Vol. 9 Issue 6 September 1997 pp. 865-875.

  • CLAESSENS S. S. DJANKOV G. POHL. (1997). Ownership and Corporate Governance: Evidence from the Czech Republic. The World Bank Policy Research Working Paper No. 1737 March 1997.

  • DEWENTER K. L. P. H. MALATESTA. (2001). State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability Leverage and Labor Intensity. The American Economic Review Vol. 91 No. 1 March 2001 pp. 320-334.

  • DJANKOV S. (1999). Ownership Structure and Enterprise Restructuring in Six Newly Independent States. The World Bank: Policy Research Working Paper 2047 February 1999.

  • EARLE J. S. (1998). Post-Privatization Ownership Structure and Productivity in Russian Industrial Enterprises. Stockholm: SITE Working Paper No. 127 March 1998.

  • EARLE J. S. S. ESTRIN 1998. Privatization Competition and Budget Constrains: Disciplining Enterprises in Russia. Stockholm: SITE Working Paper No. 128 March 1998.

  • FRYDMAN R. et al. (1993). Needed mechanisms of corporate governance and finance in Eastern Europe. Economics of Transition Vol. I (2) June 1993 pp. 171-207.

  • FRYDMAN R. et al. (1997). Private Ownership and Corporate Performance: Some Lessons from Transition Economies. The World Bank Policy Research Working Paper No. 1830 June 1997.

  • FRYDMAN R. et al. (1999). When Does Privatization Work? The Impact of Private Ownership on Corporate Performance in the Transition Economies. The Quarterly Journal of Economics vol. 114 no. 4 November 1999 pp. 1153-1191.

  • FURUBOTN E. G. R. RICHTER. (2005). Institutions and Economic Theory: The Contribution of the New Institutional Economics. Michigan: The University of Michigan Press.

  • GRYGORENKO G. S. LUTZ. (2004). Firm Performance and Privatization in Ukraine. Bonn: Zentrum für Europäische Intergrationsforschung Working Paper B04-27 October 2004.

  • HANOUSEK J. E. KOČENDA J. ŠVEJNAR. (2004). Ownership Control and Corporate Performance after Large-Scale Privatization. William Davidson Institute Working Paper No. 652 February 2004.

  • HANOUSEK J. E. KOČENDA J. ŠVEJNAR. (2006). Rozdělení privatizace podniků a jejich výkonnost. Politická ekonomie 4 2006 pp. 467-489.

  • HARPER J. T. (2002). The Performance of Privatized Firms in the Czech Republic. Journal of Banking & Finance Vol. 26 Issue 4 April 2002 pp. 621-649.

  • HAVRYLYSHYN O. D. McGETTIGAN. (1999). Privatization in Transition Countries: A Sampling of the Literature. IMF Working Paper January 1999.

  • HEITGER B. (2004). Property Rights and Wealth of Nations: A Cross-country study. Cato Journal vol. 23 no. 3 winter 2004 pp. 381-402.

  • JÜTTING J. (2003) Institutions and Development: a Critical Review. OECD Development Center.

  • KARPOFF J. M. (2001). Public versus Private Initiative in Arctic Exploration: The Effects of Incentives and Organizational Structure. Journal of Political Economy Vol. 109 No. 1 February 2001 pp. 38-78.

  • KLUSOŇ V. (2004). Instituce a odpovědnost. K filozofii ekonomické vědy. Praha: UK Karolinum.

  • KOUBA K. O. VYCHODIL J. ROBERTS. (2005). Privatizace bez kapitálu. Zvýšené transakční náklady české transformace. Praha: Karolinum.

  • LA PORTA R. F. LÓPEZ-DE-SILANES. (1999). The Benefits of Privatization: Evidence from Mexico. Quarterly Journal of Economics Vol. 114 No. 4 November 1999 pp. 1193-1242.

  • MEGGINSON W. L. R. C. NASH M. van RANDENBORGH. (1994). The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis. The Journal of Finance Vol. XLIX No. 2 June 1994 pp. 403-452.

  • MERCURO N. S. G. MEDEMA. (2006). Economics and the Law: from Posner to Postmodernism and Beyond. Princeton: Princeton University Press.

  • NORTH D. C. (1990). Institutions Institutional Change and Economic Performance. Cambridge: Cambridge University Press.

  • OLSON M. (1996). Big Bills Left on the Sidewalk: Why Some Nations are Rich and Others Poor. Journal of Economic Perspectives vol. 10/1996 pp. 3-24.

  • OLSON M. (2000). Power and Prosperity: Outgrowing Communist and Capitalist Dictatorships. New York: Basic Books.

  • PEREVALOV Y. I. GIMADY V. DOBRODEY. (1999). Impact of Privatization on Performance of Industrial Enterprises in Russia. In: The First Conference of the Global Development Network: "GDN-99: Bridging Knowledge and Policy". Bonn December 1999.

  • PINTO B. M. BELKA S. KRAJEWSKI. (1993). Transforming State Enterprises in Poland: Evidence on Adjustment by Manufacturing Firms. Brookings Papers on Economic Activity No. 1 pp. 213-270.

  • POHL G. et al. (1997). Privatization and Restructuring in Central and Eastern Europe: Evidence and Policy Options. World Bank Technical Paper No. 368 May 1997.

  • SACHS J. C. ZINNES Y. EILAT. (2000). The Gains from Privatization in Transition Economies: Is "Change of Ownership" Enough? Cambridge: Harvard Institute for International Development. CAER II Discussion Paper 63 February 2000.

  • SHIRLEY M. P. WALSH. (2000). Public versus Private Ownership: The Current State of the Debate. World Bank Policy Research Working Paper 2420 August 2000.

  • SOTO H. de. (2003). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books.

  • ZAK P. J. (2002). Institutions Property Rights and Growth. Recherches économiques de Louvain Vol. 68/2002 pp. 55-73.

Search
Journal information
Impact Factor


CiteScore 2018: 0.66

SCImago Journal Rank (SJR) 2018: 0.21
Source Normalized Impact per Paper (SNIP) 2018: 0.682

Cited By
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 256 170 6
PDF Downloads 121 96 13