Governance and State-Owned Enterprises: How Costly is Corruption?
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Summary:
State-owned enterprises (SOEs) are present in key sectors of the economies around the world. While they can provide an important public service, there is widespread concern that their activities are negatively affected by corruption. However, there is limited cross-country analysis on the costs of corruption for SOEs. We present new evidence on how corruption affects the performance of SOEs using firm level data across a large number of countries. One striking result is that SOEs perform as well as private firms in core sectors when corruption is low. Taking advantage of a novel database reforms, we also show that SOE governance reforms can generate significant performance gains.
Series:
Working Paper No. 2019/253
Subject:
Commodities Corruption Crime Economic sectors Electricity Expenditure Labor Labor costs Public enterprises Public expenditure review
English
Publication Date:
November 22, 2019
ISBN/ISSN:
9781513519296/1018-5941
Stock No:
WPIEA2019253
Pages:
43
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