Publication:
Crony Capitalism in Ukraine: Relationship between Political Connectedness and Firms' Performance

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dc.contributor.authorBalabushko, Oleksii
dc.contributor.authorBetliy, Oleksandra
dc.contributor.authorMovchan, Veronika
dc.contributor.authorPiontkivsky, Ruslan
dc.contributor.authorRyzhenkov, Mykola
dc.date.accessioned2018-06-19T15:30:07Z
dc.date.available2018-06-19T15:30:07Z
dc.date.issued2018-06
dc.description.abstractThis study combines firm-level data and data on politically exposed people to explore correlation between firms' political connectedness and their economic performance in Ukraine. First, it estimates the share of politically connected firms in Ukraine's economy. Second, the study looks at how different the performance of politically connected firms is from that of their nonconnected peers. The analysis finds that 2 percent of firms are politically connected, but they control over 20 percent of the total turnover and over 25 percent of the assets of all Ukrainian companies. Over the past two decades, politically connected firms used various channels to access economic rents: public procurement, subsidized loans, transfers from the budget, trade regulations that restrict imports, privileged access to state assets through privatizations, and beneficial tax regimes. There is a strong negative correlation between political connection and productivity. Politically connected firms are larger and employ more people, but they are less productive and grow slower in turnover and job creation. This may likely account for lower economic growth and less competitive economy.en
dc.identifierhttp://documents.worldbank.org/curated/en/494271528822739302/Crony-capitalism-in-Ukraine-relationship-between-political-connectedness-and-firms-performance
dc.identifier.doi10.1596/1813-9450-8471
dc.identifier.urihttps://hdl.handle.net/10986/29900
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8471
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectPOLITICAL NETWORKS
dc.subjectCORRUPTION
dc.subjectFIRM PERFORMANCE
dc.subjectCRIME
dc.subjectRENT SEEKING
dc.subjectTRANSPARENCY
dc.subjectPUBLIC PROCUREMENT
dc.subjectSUBSIDIES
dc.subjectTRADE PROTECTIONISM
dc.subjectPRIVATIZATION
dc.subjectTAXATION
dc.titleCrony Capitalism in Ukraineen
dc.title.subtitleRelationship between Political Connectedness and Firms' Performanceen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCrony Capitalism in Ukraine: Relationship between Political Connectedness and Firms' Performance
okr.date.disclosure2018-06-12
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/494271528822739302/Crony-capitalism-in-Ukraine-relationship-between-political-connectedness-and-firms-performance
okr.guid494271528822739302
okr.identifier.doi10.1596/1813-9450-8471
okr.identifier.externaldocumentum090224b085bdaff4_1_0
okr.identifier.internaldocumentum29980627
okr.identifier.reportWPS8471
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/494271528822739302/pdf/WPS8471.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryUkraine
okr.statistics.combined2101
okr.statistics.dr494271528822739302
okr.statistics.drstats1481
okr.topicGovernance::National Governance
okr.topicGovernance::Politics and Government
okr.topicPrivate Sector Development::Corporate Governance and Corruption
okr.topicPublic Sector Development::Public Sector Management and Reform
okr.unitGovernance Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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