CONTRACTING OUT BY LOCAL GOVERNMENTS IN

This article examines the factors that promote and inhibit contracting out by local govern-ments in transitioning nations. Specifically, this article analyzes the effect of a variety of fac-tors on the decision by Ukrainian local governments to contract out public services. The arti-cle 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 pro-gram in particular increases the likelihood that a local government will engage in contract-ing out. The findings also demonstrate the importance of factors identified by contracting out models of local governments in advanced industrialized contexts