State-Owned Enterprises as Countercyclical Instruments: Experimental Evidence from the Infrastructure Sector

Matias Herrera Dappe, Aldo Musacchio, Carolina Pan, Yadviga Viktorivna Semikolenova, Burak Turkgulu and Jonathan Barboza Pineda

No 9971, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the effects of a negative macroeconomic shock on the financial performance of state-owned enterprises (SOEs) in infrastructure. It exploits the differential effects of a drastic fall in oil prices (in 2014–15) on SOEs in energy-rich countries relative to SOEs in non-energy-rich countries, matching firms based on their fuel expense ratio. The results—based on a balanced sample using coarsened exact matching and a differences-in-differences estimation—indicate that fully owned SOEs (FSOEs) that suffered a negative macroeconomic shock performed worse than those that did not. FSOEs that suffered a shock also received large fiscal transfers from the government to cope with the shock for three years after the shock. Despite the transfers, they reduced their capital expenditures as a consequence of the shock.

Keywords: Energy and Environment; Energy and Mining; Energy Demand; Transport Services; De Facto Governments; Public Sector Administrative & Civil Service Reform; Privatization; Energy Privatization; State Owned Enterprise Reform; Economics and Finance of Public Institution Development; Democratic Government; Public Sector Administrative and Civil Service Reform; Macro-Fiscal Policy; Public Sector Economics; Public Finance Decentralization and Poverty Reduction; Economic Adjustment and Lending (search for similar items in EconPapers)
Date: 2022-03-21
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://documents.worldbank.org/curated/en/86013164 ... structure-Sector.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9971

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().