|2014|428,618|1,031|0.24|86.8|13.2|25.2|71.2|
|---|---|---|---|---|---|---|---|
|2015|440,445|1,092|0.25|87.5|12.5|23.7|72.7|
|2016|457,273|1,136|0.25|88.1|11.9|22.9|73.7|
|2017|475,757|1,209|0.25|88.9|11.1|21.4|75.4|
|2018|491,289|1,277|0.26|89.4|10.6|20.5|76.4|
|2019|511,863|1,299|0.25|89.5|10.5|20.1|76.9|
|Total|4,027,783||0.24|87.6|12.4|23.7|72.8|

Source: World Bank staff analysis using Romania MoF firm-level data, 2011-2019. For purposes of providing the summary statistics, the sample is restricted to firms with revenue and employment data. SOEs are defined as firms where national or subnational governments have ownership stake of at least 10%, while POEs are firms where national or subnational governments own 0-9.9%. The percentages for centrally owned or locally owned may not add up to 100 because there are “other” SOEs that are neither owned by the central or local government.

Table 4: Distribution of Firm-Year Observations by Sector, 2011-2019

||Observat<br>|ions|||SOEs|||
|---|---|---|---|---|---|---|---|
|Type of sector|All firms|SOEs|% All|%<br>Directly<br>owned|%<br>Indirectly<br>owned|%<br>Centrally<br>owned|%<br>Locally<br>owned|
|Competitive|3,769,932|5,691|0.15|83.2|16.8|19.3|75.7|
|Partially Contestable|85,411|1,907|2.23|92.3|7.7|49.7|48.9|
|Natural Monopoly|20,991|2,167|10.32|94.8|5.2|12.6|86.2|
|Excluded|151,449|9|0.01|100.0|0.0|0.0|100.0|
|Total|4,027,783|9,774|0.24|87.6|12.4|23.7|72.8|

Source: World Bank staff analysis using Romania MoF firm-level data, 2011-2019. SOEs are defined as firms where national or subnational governments have ownership stake of at least 10%, while POEs are firms where national or subnational governments own 0-9.9%. The percentages for centrally owned or locally owned may not add up to 100 because there are “other” SOEs that are neither owned by the central or local government.

**Romanian SOEs are larger relative to POEs.** The median employment of SOEs is larger than POEs, regardless of the government's degree of ownership ( <mark>Figure 4</mark> (a)). Similarly, the median operating revenue of SOEs is larger than POEs ( <mark>Figure 4</mark> (b)). Similar size differences remain when comparing direct, indirect, central, and local SOEs to POEs (see Annex Figure A1). These size differences between SOEs and POEs and even among SOEs remained during the immediate period of the COVID-19 pandemic (i.e., 2020). While SOEs’ revenue and employment share have only declined slightly over the 2011-2020 period,  the size of their  total assets size ha **s** increased by about 5 percentage points (Figure A2). Annex Figure A3, Figure A4, and Figure A5 also present the evolution of SOE revenue, employment, and total assets share over the 2011-20 period by direct, indirect, central, and local ownership types and by majority and minority ownership types. In addition, Table A1 in the Annex presents the summary statistics of the main variables of interest across the 2011-2019 period for POEs and SOEs, along with a statistical test of the equality of the means of each variable for the two groups. Except for employment growth and the log of labor productivity, the paper finds a statistically significant difference in the means of all the key variables. The means for SOEs are greater than those for POEs in all cases except for wage growth, entry, and exit.

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