Contracting out by Local Governments in Transitioning Nations

Abstract

This article examines the factors that promote and inhibit contracting out by local governments in transitioning nations. Specifically, this article analyzes the effect of a variety of factors on the decision by Ukrainian local governments to contract out public services. The article uses Logit techniques to analyze the results of a 72-city survey undertaken in Ukraine in 1997 and 1998. Analysis of the data indicates that the presence of a technical assistance program in particular increases the likelihood that a local government will engage in contracting out. The findings also demonstrate the importance of factors identified by contracting out models of local governments in advanced industrialized contexts.