A new instrument for measuring the local causal effect of privatization on firm performance

Jan Hagemejer and Joanna Tyrowicz

No 38, GRAPE Working Papers from GRAPE Group for Research in Applied Economics

Abstract: Despite an apparent consensus in the literature that privatization leads universally to an increase in firm performance, the problem of endogeneity bias is profound and has been emphasized in a number of meta-analyses. We propose a new instrument to address the endogeneity bias and apply it Polish medium and large firms over 1995-2008. We find that improvement in firm performance is not universal, in particular, we find no improvement among manufacturing firms privatized to domestic investors.

Keywords: misallocation; privatization; transition (search for similar items in EconPapers)
JEL-codes: D24 O47 P31 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2019
New Economics Papers: this item is included in nep-eur
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http://grape.org.pl/WP/38_HagemejerTyrowicz_website.pdf (application/pdf)

Related works:
Journal Article: A New Instrument for Measuring the Local Causal Effect of Privatisation on Firm Performance (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:fme:wpaper:38

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