Privatization boosts productivity in Baltic Republics, favoring foreign ownership.
The study looked at how privatization affects business efficiency in Estonia, Latvia, and Lithuania. They found that private ownership generally leads to better productivity compared to state ownership. However, the impact of different types of private ownership varied across countries. In some cases, foreign ownership was more beneficial, while in others, employee ownership was more effective than manager ownership. Overall, the findings suggest that privatization can improve productivity, but the specific ownership structure matters.