Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia

Edvard Jakopin; Aleksandar Gracanac; Jugoslav Anicic

doi:doi:10.11648/j.ijefm.20221001.11

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Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia

Edvard Jakopin, Aleksandar Gracanac, Jugoslav Anicic

Published in International Journal of Economics, Finance and Management Sciences (Volume 10, Issue 1)

Received: 2 July 2021 Accepted: 24 November 2021 Published: 25 January 2022

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Abstract

This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While healthy enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency but also for the purpose of harmonization with the ethical and deontological requirements.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 10, Issue 1)
DOI	10.11648/j.ijefm.20221001.11
Page(s)	1-11
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

State-Owned Enterprises, Structural Changes, Qualitative Business Performance, Reform Issues and Priorities

References

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[3]	Estrin, S., Hanousek, J., Kocenda, E. & Svejnar, J. (2009). The Effects of Privatization and Ownership in Transition Economies. Journal of Economic Literature 47 (3), 699-728.
[4]	European Commission, Directorate-General for Economic and Financial Affairs. (2016). State-Owned Enterprises in the EU: Lessons Learnt and Ways Forward in a Post-Crisis Context. Luxembourg: Publications Office of the European Union.
[5]	Fiscal Council of Republic of Serbia. (2014). Analysis of state-owned enterprises: Fiscal aspect. summary-state_owned_enterprises.pdf (fiskalnisavet.rs).
[6]	Harrison, Ann., Meyer, M., Wang, P., Zhao, L. & Zhao, M. (2019). Can a Tiger Change its Stripes? Reform of Chinese State-Owned Enterprises in the Penumbra of the State. NBER Working Paper 25475, National Bureau of Economic Research, Cambridge, MA.
[7]	IMF. (2016). How to Improve the Financial Oversight of Public Corporations. IMF How-To-Note 16/05, International Monetary Fund, Washington, DC.
[8]	IMF (IMF staff team led by Richmond, Ch., Dohlman, P., Miniane, J. & Roaf, J. in collaboration with EBRD staff). (2019). Reassessing the Role of State-Owned Enterprises in Central, Eastern, and Southeastern Europe.
[9]	Jakopin, E. & Cokorilo, N. (2020). Business performance of the economy of the Republic of Serbia 2015-2019. Trendovi (special edition). Republic Statistial Office. Belgrade.
[10]	Kowalski, P., Buge, M., Sztajerowska, M. & Egeland, M. (2013). State-Owned Enterprises – Trade Effects and Policy Impications. OECD Trade Policy Papers, No. 147.
[11]	Li, Sh., Chou Lin, Y. & Selover, D. (2014). Chinese State-Owned Enterprises: Are They Inefficient? The Chinese Economy, 47 (5–6), 81–115.
[12]	Madžar, LJ. (2015). Gordijev čvor javnih preduzeća u Srbiji: Drešiti ili seći? Restrukturiranje JP u uslovima institucionalnih ograničenja. Scientific Society of Economists of Serbia and Faculty of Economics in Belgrade. zbornik2015deo1.pdf (bg.ac.rs).
[13]	OECD. (2011). State-Owned Enterprise Governance Reform. Paris: OECD Publishing.
[14]	OECD. (2017). The Size and Sectoral Distribution of State-Owned Enterprises. OECD Publishing.
[15]	OECD. (2018). Ownership and Governance of State-Owned Enterprises: A Compendium of National Practices. Paris: OECD Publishing.
[16]	PricewaterhouseCoopers. (2015). State-Owned Enterprises: Catalysts for Public Value Creation? PricewaterhouseCoopers, London.
[17]	Putnins, T. (2015). Economics of State-Owned Enterprises. International Journal of Public Administration 38 (11): 815–32.
[18]	Wang, K. & Shailer, G. (2018). Does Ownership Identity Matter? A Meta-analysis of Research on Firm Financial Performance in Relation to Government versus Private Ownership. Abacus 54 (1): 1–35.
[19]	World Bank. (2014). Corporate Governance of State-Owned Enterprises: A Toolkit. World Bank Group, Washington, DC.

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APA Style

Edvard Jakopin, Aleksandar Gracanac, Jugoslav Anicic. (2022). Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia. International Journal of Economics, Finance and Management Sciences, 10(1), 1-11. https://doi.org/10.11648/j.ijefm.20221001.11

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ACS Style

Edvard Jakopin; Aleksandar Gracanac; Jugoslav Anicic. Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia. Int. J. Econ. Finance Manag. Sci. 2022, 10(1), 1-11. doi: 10.11648/j.ijefm.20221001.11

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AMA Style

Edvard Jakopin, Aleksandar Gracanac, Jugoslav Anicic. Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia. Int J Econ Finance Manag Sci. 2022;10(1):1-11. doi: 10.11648/j.ijefm.20221001.11

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@article{10.11648/j.ijefm.20221001.11,
  author = {Edvard Jakopin and Aleksandar Gracanac and Jugoslav Anicic},
  title = {Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {10},
  number = {1},
  pages = {1-11},
  doi = {10.11648/j.ijefm.20221001.11},
  url = {https://doi.org/10.11648/j.ijefm.20221001.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20221001.11},
  abstract = {This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While healthy enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency but also for the purpose of harmonization with the ethical and deontological requirements.},
 year = {2022}
}

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AU  - Aleksandar Gracanac
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DO  - 10.11648/j.ijefm.20221001.11
T2  - International Journal of Economics, Finance and Management Sciences
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Author Information

Edvard Jakopin

Faculty of Economics and Finance, Union - Nikola Tesla University, Belgrade, Republic of Serbia
Aleksandar Gracanac

Faculty of Entrepreneurial Business and Real Estate Management, Union - Nikola Tesla University, Belgrade, Republic of Serbia
Jugoslav Anicic

Faculty of Economics and Finance, Union - Nikola Tesla University, Belgrade, Republic of Serbia

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APA Style

Edvard Jakopin, Aleksandar Gracanac, Jugoslav Anicic. (2022). Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia. International Journal of Economics, Finance and Management Sciences, 10(1), 1-11. https://doi.org/10.11648/j.ijefm.20221001.11

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ACS Style

Edvard Jakopin; Aleksandar Gracanac; Jugoslav Anicic. Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia. Int. J. Econ. Finance Manag. Sci. 2022, 10(1), 1-11. doi: 10.11648/j.ijefm.20221001.11

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AMA Style

Edvard Jakopin, Aleksandar Gracanac, Jugoslav Anicic. Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia. Int J Econ Finance Manag Sci. 2022;10(1):1-11. doi: 10.11648/j.ijefm.20221001.11

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@article{10.11648/j.ijefm.20221001.11,
  author = {Edvard Jakopin and Aleksandar Gracanac and Jugoslav Anicic},
  title = {Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {10},
  number = {1},
  pages = {1-11},
  doi = {10.11648/j.ijefm.20221001.11},
  url = {https://doi.org/10.11648/j.ijefm.20221001.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20221001.11},
  abstract = {This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While healthy enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency but also for the purpose of harmonization with the ethical and deontological requirements.},
 year = {2022}
}

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TY  - JOUR
T1  - Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia
AU  - Edvard Jakopin
AU  - Aleksandar Gracanac
AU  - Jugoslav Anicic
Y1  - 2022/01/25
PY  - 2022
N1  - https://doi.org/10.11648/j.ijefm.20221001.11
DO  - 10.11648/j.ijefm.20221001.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 1
EP  - 11
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20221001.11
AB  - This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While healthy enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency but also for the purpose of harmonization with the ethical and deontological requirements.
VL  - 10
IS  - 1
ER  -

Copy | Download