The Impact of Public Administration on the Efficiency of Russian Firms

— The paper evaluates the impact of the state form of ownership on the profitability of the assets of Russian companies. In order to take into account the endogenous formation of ownership, an original combination and modification of econometric analysis methods are used (a new semiparametric regres...

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Bibliographic Details
Published in:Studies on Russian economic development 2023-02, Vol.34 (1), p.59-67
Main Authors: Dolgikh, S. I., Potanin, B. S.
Format: Article
Language:English
Subjects:
Business metrics
Closely held corporations
Econometrics
Economic development
Economics
Economics and Finance
Economy and Enterprises
Efficiency
Fixed assets
International Economics
Jointly owned property
Methods
Ownership
Privatization
Profitability
Public administration
Return on assets
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Summary:— The paper evaluates the impact of the state form of ownership on the profitability of the assets of Russian companies. In order to take into account the endogenous formation of ownership, an original combination and modification of econometric analysis methods are used (a new semiparametric regression model is proposed) for data from a sample of 12 000 commercial firms in 12 sectors of the economy, which was taken for 2020. The results of the analysis indicate that state firms are less efficient. At the same time, the gap in the efficiency of public and private companies can be significantly overestimated, if we do not take into account the nonrandom selection into the category of state-owned firms, which, in particular, may be due to the fact that more attractive firms are more likely to be privatized.
ISSN:1075-7007
1531-8664
DOI:10.1134/S1075700723010045