Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence

This paper examines the performance of infrastructure companies owned by the state, using the newly created World Bank Database of Infrastructure State-Owned Enterprises (SOEs). The data cover 19 countries and 135 SOEs between 2000 and 2018. The an...

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Main Authors:	Herrera Dappe, Matias, Musacchio, Aldo, Pan, Carolina, Semikolenova, Yadviga Viktorivna, Turkgulu, Burak, Barboza, Jonathan
Format:	Working Paper
Language:	English
Published:	Washington, DC: World Bank 2022
Subjects:	INFRASTRUCTURAL INVESTMENT PUBLIC INFRASTRUCTURE INFRASTRUCTURE STATE OWNED ENTERPRISES SOE CROSS-COUNTRY COMPARISON
Online Access:	http://documents.worldbank.org/curated/en/488131647357423308/Infrastructure-State-Owned-Enterprises-A-Tale-of-Inefficiency-and-Fiscal-Dependence http://hdl.handle.net/10986/37157

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spelling	okr-10986-371572022-03-18T05:10:42Z Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Viktorivna Turkgulu, Burak Barboza, Jonathan INFRASTRUCTURAL INVESTMENT PUBLIC INFRASTRUCTURE INFRASTRUCTURE STATE OWNED ENTERPRISES SOE CROSS-COUNTRY COMPARISON This paper examines the performance of infrastructure companies owned by the state, using the newly created World Bank Database of Infrastructure State-Owned Enterprises (SOEs). The data cover 19 countries and 135 SOEs between 2000 and 2018. The analysis reveals that infrastructure SOEs are large and have weak financial performance that generates significant fiscal risk. The paper introduces new measures of financial performance net of fiscal transfers and examines previously uncovered patterns of subsidies by sector. It examines the effect of state ownership by comparing the firms in the database with hundreds of comparable private firms, using coarsened exact matching. The findings show that relative to comparable private firms, infrastructure SOEs are less efficient, represent a larger share of gross domestic product, have larger liabilities as a share of gross domestic product and larger employment costs as a share of revenues, and yield lower returns on assets. 2022-03-17T17:50:12Z 2022-03-17T17:50:12Z 2022-03-15 Working Paper http://documents.worldbank.org/curated/en/488131647357423308/Infrastructure-State-Owned-Enterprises-A-Tale-of-Inefficiency-and-Fiscal-Dependence http://hdl.handle.net/10986/37157 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INFRASTRUCTURAL INVESTMENT PUBLIC INFRASTRUCTURE INFRASTRUCTURE STATE OWNED ENTERPRISES SOE CROSS-COUNTRY COMPARISON
spellingShingle	INFRASTRUCTURAL INVESTMENT PUBLIC INFRASTRUCTURE INFRASTRUCTURE STATE OWNED ENTERPRISES SOE CROSS-COUNTRY COMPARISON Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Viktorivna Turkgulu, Burak Barboza, Jonathan Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence
description	This paper examines the performance of infrastructure companies owned by the state, using the newly created World Bank Database of Infrastructure State-Owned Enterprises (SOEs). The data cover 19 countries and 135 SOEs between 2000 and 2018. The analysis reveals that infrastructure SOEs are large and have weak financial performance that generates significant fiscal risk. The paper introduces new measures of financial performance net of fiscal transfers and examines previously uncovered patterns of subsidies by sector. It examines the effect of state ownership by comparing the firms in the database with hundreds of comparable private firms, using coarsened exact matching. The findings show that relative to comparable private firms, infrastructure SOEs are less efficient, represent a larger share of gross domestic product, have larger liabilities as a share of gross domestic product and larger employment costs as a share of revenues, and yield lower returns on assets.
format	Working Paper
author	Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Viktorivna Turkgulu, Burak Barboza, Jonathan
author_facet	Herrera Dappe, Matias Musacchio, Aldo Pan, Carolina Semikolenova, Yadviga Viktorivna Turkgulu, Burak Barboza, Jonathan
author_sort	Herrera Dappe, Matias
title	Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence
title_short	Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence
title_full	Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence
title_fullStr	Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence
title_full_unstemmed	Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence
title_sort	infrastructure state-owned enterprises : a tale of inefficiency and fiscal dependence
publisher	Washington, DC: World Bank
publishDate	2022
url	http://documents.worldbank.org/curated/en/488131647357423308/Infrastructure-State-Owned-Enterprises-A-Tale-of-Inefficiency-and-Fiscal-Dependence http://hdl.handle.net/10986/37157
_version_	1764486636365676544

Infrastructure State-Owned Enterprises : A Tale of Inefficiency and Fiscal Dependence

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