Effects of Privatization on Behavior and Performance of Ukrainian Enterprises in 2000-2001

The project "Effects of Privatization on Behavior and Performance of Ukrainian Enterprises in 2000-2001" granted by the State Property Fund of Ukraine was launched in May 2001.

The idea of the project was:

  • to analyze the differences in economic (particularly investment) behavior, efficiency and performance between the privatized (with various depth) and state-owned firms;
  • to identify existing problems in the field of enterprise dvelopment policies and to make policy recommendations for the government of Ukraine.

Project background

The main objective of started in Ukraine privatization processes was to improve economic performance of Ukrainian enterprises that alternating their economic behavior. However, in the post-soviet economies numerous institutional impediments obstructed these changes and weaken the relationship between economic behavior and firm's performance. That gave some experts a reason to blame privatization for its allegedly negative impact on economic performance, and, consequently growth.

Meanwhile, during the last years one can observe the growing positive differences between (fully or partly) privatized and state-owned firms. Does this change coincide with the start of economic growth owed to already accomplished stage of privatization? By what extent the investments made by industrial firms could be economically justified? By what extent the economic growth in Ukraine could be considered sustainable? Does the degree of market justification of investments depend on the ownership, as predicted theoretically?

To fulfil project tasks, the research group was trying to identify and compare the patterns of economic behavior and economic performance of privatized, state-owned and "mixed" Ukrainian firms. This helped our group to infer about the impact that privatization has had on Ukrainian enterprises, but also to elaborate policy recommendations on how to make privatization more effective.

Тематичні напрямки
  • Projects
  • Enterprise restructuring

May 11, 2001