Measuring the Causal Effect of Privatization on Firm Performance

Jan Hagemejer, Joanna Tyrowicz and Jan Svejnar

No 2014-14, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: Despite an apparent consensus in the literature that privatization leads to increased productivity and profitability of firms, the problem of endogeneity bias is profound and has been emphasized in a number of meta-analyses. We propose a new method to address the endogeneity bias and apply it to a universe of Polish medium and large firms over 1995-2009. Unlike some previous studies we find that improvement in firm performance is a rare phenomenon, which suggests that the endogeneity bias could have been indeed large.

Keywords: privatization; firm performance; endogeneity bias (search for similar items in EconPapers)
JEL-codes: C14 O16 P45 P52 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2014
New Economics Papers: this item is included in nep-cse, nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP131.pdf First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2014-14

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