Author : Mr.Serhan Cevik
Publisher : International Monetary Fund
ISBN 13 : 1498311555
Total Pages : 15 pages
Book Rating : 4.4/5 (983 download)
Book Synopsis You Are Suffocating Me! Firm-Level Evidence on Crowding Out by : Mr.Serhan Cevik
Download or read book You Are Suffocating Me! Firm-Level Evidence on Crowding Out written by Mr.Serhan Cevik and published by International Monetary Fund. This book was released on 2019-04-24 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Literature on whether government spending crowds out or crowds in the private sector is large, but still without an unambiguous conclusion. Using firm-level data from Ukraine, this paper provides a granular empirical investigation to disentangle the impact of state-owned enterprises (SOEs) on private firm investment in Ukraine—a large transition economy. Controlling for firm characteristics and systematic differences across sectors, the results indicate that the SOE concentration in a given sector has a statistically significant negative effect on private fixed capital formation, and that the impact of SOEs is stronger in those industries in which SOEs have a more dominant presence. These findings imply that private firms operating in sectors with a high level of SOE concentration invest systematically less than businesses that are not competing directly with SOEs.