Ownership and Growth
This article suggests how state enterprises can be incorporated into the theoretical and empirical growth literature. Specifically, it shows that if state enterprises are less efficient than private firms, invest less, employ less skilled labor, an...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/09/17737471/ownership-growth http://hdl.handle.net/10986/17439 |
| Summary: | This article suggests how state
enterprises can be incorporated into the theoretical and
empirical growth literature. Specifically, it shows that if
state enterprises are less efficient than private firms,
invest less, employ less skilled labor, and are less eager
to adopt new technology, then a large state enterprise
sector tends to be associated with slow economic growth, all
else remaining the same. The empirical evidence for 1978-92
indicates that, through a mixture of these channels, an
increase in the share of state enterprises in employment by
one standard deviation could reduce per capita growth by one
to two percentage points a year from one country to another. |
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