State-Owned Enterprises as Countercyclical Instruments

• Tác giả: Matias Herrera Dappe
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330 Economics
• Thông tin xuất bản: World Bank, Washington, DC, 2022
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 293259
• Chủ đề: 1. INFRASTRUCTURE; 2. MACROECONOMIC SHOCK; 3. PRIVATE UTILITIES; 4. PUBLIC UTILITIES; 5. STATE-OWNED ENTERPRISE

Tóm tắt

This paper examines the effects of a negative macroeconomic shock on the financial performance of state-owned enterprises (SOEs) in infrastructure. It exploits the differential effects of a drastic fall in oil prices (in 2014-15) on SOEs in energy-rich countries relative to SOEs in non-energy-rich countries, matching firms based on their fuel expense ratio. The results-based on a balanced sample using coarsened exact matching and a differences-in-differences estimation-indicate that fully owned SOEs (FSOEs) that suffered a negative macroeconomic shock performed worse than those that did not. FSOEs that suffered a shock also received large fiscal transfers from the government to cope with the shock for three years after the shock. Despite the transfers, they reduced their capital expenditures as a consequence of the shock.