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Does State Ownership Have Limits in Romania?: An Assessment of Firm Performance and Market Outcomes before and during the COVID-19 Crisis

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dc.contributor.authorDauda, Seidu
dc.contributor.authorPop, Georgiana
dc.contributor.authorIootty, Mariana
dc.date.accessioned2023-12-21T15:40:56Z
dc.date.available2023-12-21T15:40:56Z
dc.date.issued2023-12-21
dc.description.abstractThis paper assesses the performance of Romanian state-owned enterprises with various degrees of ownership (minority owned with 10 to 24.9 percent stakes, minority owned with 25 to 49.9 percent stakes, and majority owned with at least 50 percent ownership stakes) and control levels (central versus local state-owned enterprises and directly versus indirectly owned state-owned enterprises) relative to privately owned enterprises. The paper uses the Romanian firm-level data from the Ministry of Finance covering enterprises of all sizes from 2011 to 2020, combined with the new World Bank Businesses of the State dataset, which tracks ownership of state business entities with at least 10 percent stake in Romania. The paper analyzes whether various degrees of state ownership and levels of control matter for state-owned enterprises’ performance. The paper also assesses whether Romanian state-owned enterprises were able to act as stabilizers during the early period of the COVID-19 pandemic, and how the presence of state-owned enterprises in markets correlates with market outcomes. The findings show that relative to private firms, Romanian state-owned enterprises, particularly those that are majority owned, directly owned, and local ones, employ more people, pay higher wages, but are less productive. In addition, Romanian state-owned enterprises cushioned the job and wage losses associated with the COVID-19 pandemic better than private firms, especially in competitive sectors. Finally, there is evidence that the presence of state-owned enterprises may limit private firm entry and allocative efficiency.en
dc.identifierhttp://documents.worldbank.org/curated/en/099512412182368915/IDU0e1b2d58d06b57042190830e0c9fa9740d811
dc.identifier.doi10.1596/1813-9450-10649
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40789
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10649
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectSTATE-OWNED ENTERPRISES
dc.subjectCOMPETITION
dc.subjectFIRM PERFORMANCE
dc.subjectMARKET STRUCTURE
dc.subjectSUBSIDIES
dc.subjectCOVID-19 IMPACTS
dc.subjectPRODUCTIVITY OF STATE-OWNED ENTERPRISES
dc.titleDoes State Ownership Have Limits in Romania?en
dc.title.subtitleAn Assessment of Firm Performance and Market Outcomes before and during the COVID-19 Crisisen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleDoes State Ownership Have Limits in Romania?: An Assessment of Firm Performance and Market Outcomes
okr.date.disclosure2023-12-18
okr.date.lastmodified2023-12-18T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099512412182368915/IDU0e1b2d58d06b57042190830e0c9fa9740d811
okr.guid099512412182368915
okr.identifier.docmidIDU-e1b2d58d-6b57-4219-830e-c9fa9740d811
okr.identifier.doi10.1596/1813-9450-10649
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10649
okr.identifier.externaldocumentum34218204
okr.identifier.internaldocumentum34218204
okr.identifier.reportWPS10649
okr.import.id2659
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099512412182368915/pdf/IDU0e1b2d58d06b57042190830e0c9fa9740d811.pdfen
okr.region.countryRomania
okr.sectorOther Industry, Trade and Services,Sub-National Government
okr.themePublic Private Partnerships,Mitigation,Municipal Institution Building,Investment and Business Climate,Data Development and Capacity Building,State-owned Enterprise Reform and Privatization,Environment and Natural Resource Management,Private Sector Development,Regulation and Competition Policy,Public Sector Management,Climate change,Business Enabling Environment,Data production, accessibility and use,Public Administration
okr.topicGovernance::Governance Diagnostic Capacity Building
okr.topicGovernance::Local Government
okr.topicGovernance::National Governance
okr.unitEFI-FCI-TIC-Markets
okr.unitCompet.&Tech (ETIMT)
okr.unitEFI-MNA-FCI-Finance-2 (EMNF2)
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relation.isAuthorOfPublication.latestForDiscoverydf7e1e55-05d4-558a-a340-71941945e91d
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
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