2019
DOI: 10.5089/9781513519296.001
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Governance and State-Owned Enterprises

Abstract: 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 fir… Show more

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Cited by 20 publications
(27 citation statements)
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“…By contrast, in countries with strong countrywide governance, the productivity gap was only 7 percent. This finding is reinforced by Baum et al (2019), who also find that SOEs perform markedly worse than their private sector counterparts in countries with high levels of corruption or poor fiscal transparency (even after controlling for a country's level of development). The same study also demonstrates that SOE governance reforms can generate significant gains in performance.…”
Section: > > S T a T E -O W N E D E N T E R P R I S E S > > > D I R E C T E F F E C T Smentioning
confidence: 96%
“…By contrast, in countries with strong countrywide governance, the productivity gap was only 7 percent. This finding is reinforced by Baum et al (2019), who also find that SOEs perform markedly worse than their private sector counterparts in countries with high levels of corruption or poor fiscal transparency (even after controlling for a country's level of development). The same study also demonstrates that SOE governance reforms can generate significant gains in performance.…”
Section: > > S T a T E -O W N E D E N T E R P R I S E S > > > D I R E C T E F F E C T Smentioning
confidence: 96%
“…For example, one of its guidelines for advanced transparency is to cover the fiscal operations of the central government, but also local governments and state-owned enterprises. This means shedding light in areas where misuse of public funds is usually more common (Baum, Hackney, Medas, & Mouhamadou, 2019). Guidelines to report tax incentives and functional classification of government spending (e.g.…”
Section: A Transparency and Accountabilitymentioning
confidence: 99%
“…For example, one of its guidelines for advanced transparency is to cover the fiscal operations of the central government, but also local governments and state-owned enterprises. This means shedding light in areas where misuse of public funds is usually more common (Baum et al 2019).…”
Section: A Transparency and Accountabilitymentioning
confidence: 99%