Governance and State-Owned Enterprises: How Costly is Corruption?

Baum, Andrew; Hackney, Clay; Medas, Paulo; Sy, Mouhamadou

doi:10.2139/ssrn.3523126

Cited by 14 publications

(24 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A large body of literature describes SOEs for different economies. Recent studies analyze groups of countries, such as the Organisation for Economic Co-operation and Development (OECD, 2018) or BRIICS (Brazil, Russia, India, Indonesia, China, South Africa) (Kowalski et al, 2013, Baum et al, 2019 or a single developing country (for example Azerbaijan (Hashimova and Kadyrov 2017), Vietnam (Minor et al, 2018), China (Lin et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…On one hand, SOEs have positive impacts on the economy and can contribute to sustainable growth. As pointed out by Baum et al (2019), the creation of SOEs can address market failures and allow to achieve economic and social policies at reasonable costs and thus, can contribute to sustainable growth. In economic downturns, SOEs can stabilize economic growth by executing investement and they can promote technical progress by investing in riskier areas of technology (Qi & Kotz, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Oftentimes, the creation of SOEs aims to address market failures and to achieve economic and social outcomes at reasonable costs (Baum et al, 2019). Traditionally, SOEs have been oriented towards domestic markets.…”

Section: Introductionmentioning

confidence: 99%

“…In core sectors of the economy, SOEs can provide important goods and services at a reasonable cost (in an efficient way). However, evidence shows that corruption severely undermines performance of state-owned enterprise (Baum et al, 2019). Because of their lower production efficiency SOEs are generally associated with a lower economic performance compared to non-SOEs (Lin et al, 1998;Allen et al, 2005, both quoted in Lin et al, 2020.…”

Section: Introductionmentioning

confidence: 99%

“…Depending on the level of corruption in the country, in general, private firms perform better in such sectors than SOE. In core sectors (mining, electricity and gas, water, and transport) SOEs perform as well as private firms if corruption is low (Baum et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The implications of deteriorating state‐owned enterprise performance on the South African economy

Chitiga-Mabugu

Henseler

Mabugu

et al. 2021

Ann Public Coop Econ

View full text Add to dashboard Cite

This paper constructs and uses a recursive dynamic general equilibrium model for South Africa to examine the economywide consequences of a continued deterioration in performance of state-owned enterprises and rise in foreign interest rates. A decline in state-owned enterprisesproductivity has substantial negative ramifications on the rest of the economy. Government would increase its domestic borrowing and therefore hamper private investment, leading to a decrease in gross domestic product and rising unemployment, particularly the unskilled. The model shows that the effects get worse in the long run compared to the short run and when foreign interest rates increase. Preparedness and awareness of these economywide consequences point to the importance of addressing the problems of competitiveness in the state-owned entities.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The implications of deteriorating state‐owned enterprise performance on the South African economy

Chitiga-Mabugu

Henseler

Mabugu

et al. 2021

Ann Public Coop Econ

View full text Add to dashboard Cite

show abstract

How to Achieve Inclusive Growth

2021

View full text Add to dashboard Cite

Rising inequality and widespread poverty, social unrest and polarization, gender and ethnic disparities, declining social mobility, economic fragility, unbalanced growth due to technology and globalization, and existential danger from climate change are urgent global concerns of our day. These issues are intertwined. They therefore require a holistic framework to examine their interplay and bring the various strands together. This book brings together leading academic economists and experts from several international institutions to explain the sources and scale of these challenges. The book summarizes a wide array of empirical evidence and country experiences, lays out practical policy solutions, and devises a comprehensive and unified plan of action for combatting these economic and social disparities. This authoritative book is accessible to policy makers, students, and the general public interested in how to craft a brighter future by building a sustainable, green, and inclusive society in the years ahead.

show abstract

Effects of regulatory burden and corruption on firm performance: Evidence from Moldova

Tan¹,

Tusha

2023

Review Development Economics

View full text Add to dashboard Cite

Firms in Moldova face a high level of regulatory burden, as proxied by the number of inspections by public authorities. At the same time, they face high levels of corruption. We examine the effect of frequent inspections on four measures of firm performance: labour and total factor productivity, and levels of tangible and intangible assets. We also investigate how corruption affects the relationship between inspections and firm performance. We perform panel data analysis using firm‐level administrative data and survey data from Moldova in 2005–2015. The results show that inspections and corruption each affect firm productivity negatively, but corruption moderates the negative effect of inspections. We also find that inspections and intangible assets are positively correlated, but this correlation is weaker for higher levels of corruption. Finally we examine whether these results differ by industry, firm size and ownership types. Inspections and corruption affect medium and large firms, and state‐owned enterprises differently from micro and small firms and private firms respectively.

show abstract

Governance and State-Owned Enterprises: How Costly is Corruption?

Cited by 14 publications

References 0 publications

The implications of deteriorating state‐owned enterprise performance on the South African economy

The implications of deteriorating state‐owned enterprise performance on the South African economy

How to Achieve Inclusive Growth

Effects of regulatory burden and corruption on firm performance: Evidence from Moldova

Contact Info

Product

Resources

About