Citation

Discussion Paper Details

Please find the details for DP5215 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The Determinants of Asset Stripping: Theory and Evidence from the Transition Economies

Author(s): Nauro F. Campos and Francesco Giovannoni

Publication Date: September 2005

Keyword(s): asset stripping, corruption, law enforcement and transition

Programme Area(s): Institutions and Economic Performance and Public Economics

Abstract: During the transition from plan to market, managers and politicians succeeded in maintaining control of large parts of the stock of socialist physical capital. Despite the obvious importance of this phenomenon, there have been no efforts to model, measure and investigate this process empirically. This paper tries to fill this gap by putting forward theory and econometric evidence. We argue that asset stripping is driven by the interplay between the firm's potential profitability and its ability to influence law enforcement. Our econometric results, for about 950 firms in five transition economies, provide support for this argument.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5215

Bibliographic Reference

Campos, N and Giovannoni, F. 2005. 'The Determinants of Asset Stripping: Theory and Evidence from the Transition Economies'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5215