The ECA Academy, organized annually by the Office of the Europe and Central Asia (ECA) Chief Economist, identifies the best new policy-relevant research from across the World Bank Group on topics of interest to the ECA region. This year, three winning papers were selected with significant policy implications for the region on environmental sustainability, public health, and state-owned enterprises.
During this session we awarded the winning authors and discussed one of the winning papers "". This paper characterizes credit allocation distortions in capital markets across state and private-owned enterprises, by implementing Whited and Zhao (2021)¡¯s methodology on a novel firm-level database from 2010-2016. It reveals that state-owned enterprises (SOEs) get subsidized access to debt and equity compared to private firms in the same country and narrow industry but cautions that eliminating SOEs could harm overall productivity due to their technical efficiency. However, targeted reforms that only shut down poor performing SOEs could boost total factor productivity by up to 15% in every country studied.