
Contents
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Data and Methods Data and Methods
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Aggregate Effects Aggregate Effects
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Regional Variation Regional Variation
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Conclusion Conclusion
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Notes Notes
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References References
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7 Privatization
Get accessJ. David Brown is a Research Fellow at the Institute for the Study of Labor (IZA). He conducts research on privatization, productivity dynamics, and entrepreneurship.
John S. Earle is a Professor of Public Policy at George Mason University in Fairfax, and a Professor of Economics at the Central European University (CEU) in Budapest, Hungary. His research interests include firm performance, productivity dynamics, and the consequences of restructuring for workers, as well as various topics in labor, transition, and development economics.
Scott Gelbach is a Professor of Political Science at the University of Wisconsin in Madison, and a Senior Research Fellow at the International Center for the Study of Institutions and Development in the National Research University Higher School of Economics, Moscow. A specialist in Russia, his research interests center on the study of economic reform and other questions in political economy.
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Published:01 October 2013
Cite
Abstract
We replicate, update, and extend earlier work on manufacturing enterprise privatization and productivity in Russia. Our results suggest a more nuanced view of privatization than that previously offered. We confirm findings that the average impact on productivity of privatization to domestic owners is around –3 to –5 percent, though some regions show positive productivity gains of similar magnitude to those in Central Europe. The regional variation is positively associated with the size of the regional bureaucracy. Notwithstanding the average negative effect, our updated results show a pronounced change after 2002 as the productivity effects of Russian privatization have begun to approach those seen elsewhere much earlier. Privatization became most effective west of the Urals, in areas with greater market access. Initially an outlier, by 2005 Russia appeared to be becoming more of a normal country, at least in the narrow sense of the impact of private ownership on firm productivity.
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