The Institutional Basis of Successful Economic Reform: Privatization Effectiveness and Regime Change After Ukraine's Orange Revolution

Wednesday, April 28, 2010
707 International Affairs Building

Please join the Harriman Institute and the Department of Political Science for a meeting of the Comparative Politics Seminar with Scott Gehlbach of the University of Wisconsin-Madison.

Why do similar economic reforms often produce dissimilar outcomes? We examine the impact of institutional environment on reform outcomes, exploiting a particular moment of institutional change: the 2004 Orange Revolution, which resulted in a dramatic shift in the balance of power among regions in Ukraine. Using a unique panel dataset of over 7,000 Ukrainian manufacturing enterprises, we estimate change at the regional level in the effect of privatization on firm performance. Our analysis finds a marked increase after the Orange Revolution in the relative effectiveness of privatization in regions that supported Viktor Yushchenko during the 2004 Ukrainian presidential election.