CEU Electronic Theses and Dissertations, 2015
| Author | Miller, Iaroslav |
|---|---|
| Title | Political Turnover and Firm Productivity: Evidence from the Ukrainian Presidential Election of 2010 |
| Summary | In this study I examine the effect of political turnover on the firm level productivity in Ukraine after the Presidential Election of 2010. In order to estimate the effect I employ difference-in-differences as identification strategy. I use Ukrainian firms’ balance sheet data for the 2007-2013 period available at the Amadeus database. On the basis of the voting results of the Presidential Election of 2010, I select 16 regions of Ukraine: 6 that gave the largest share of votes to Viktor Yanukovych, the eventual winner, 6 that gave the largest share of votes to Yulia Tymoschenko, his opponent and a successor of Viktor Yushchenko as a pro-Western candidate, and 4 regions that did not show any particular support for any of the candidates. On the basis of the region of location I divide the companies into 3 groups: opposing, supporting and control firms. I find a statistically significant effect of Yanukovych’s term on firm level productivity in Ukraine. I do not find that firms located in the supporting regions experienced a statistically significant positive effect of political turnover on their productivity. However, I find that SMEs located in the opposing regions experienced a significant negative impact of his term on their productivity. As a result, I suggest four policy recommendations that can be implemented by the Ukrainian government in order to decrease dependence of firms on politicians. |
| Supervisor | Miklós Koren |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2015/miller_iaroslav.pdf |
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