Impact of privatization on firm performance in Vietnam: A Staggered Difference-in-Differences analysis with heterogeneous treatment effects

Quang Nguyen

No 2303, Documentos de Trabajo EH-Valencia (DT-EHV) from Economic History group at the Universitat de Valencia

Abstract: This study contributes to the empirical literature on the effects of privatization on the financial and operating performance of former state-owned enterprises (SOEs) and offers evidence on the heterogeneity of these effects across multiple dimensions. Utilizing a sample comprising 770 privatized SOEs and 2,154 non-privatized SOEs in Vietnam from 2006 to 2010, I conduct a staggered diff-in-diff estimation to identify the causal impact of privatization on firm's performance. The results reveal that, on average, privatizaion led to an increase of 5% in sales per worker, a 23-27% increase in profitability measures, and 8% decrease in debt ratio, and a 5% decline in total employment. However, little changes in post-privatization performance are observed for large SOEs, strategic SOEs, and service SOEs.

Keywords: Privatization; firm performance; staggered difference-in-differences; heterogeneous treatment effects (search for similar items in EconPapers)
JEL-codes: G34 L33 N25 P31 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2023-09
New Economics Papers: this item is included in nep-eff, nep-reg, nep-sea and nep-tra
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