Methods of privatization and economic growth in transition economies

Methods of Privatization and Economic Growth in Transition Economies

Privatization Methods and Economic Growth*

In low-income countries privatization, if implemented appropriately, may play an important role in generating growth. Using data recently available from Central and Eastern Europe, we therefore investigate the impact of alternative methods of privatization on economic growth. Our analysis suggests that the use of conventional privatization methods to match owners with firms can be inefficient i...

Financial Development and Economic Growth in Transition Economies :

We examine the role of financial development in economic growth in the former Communist countries of Central and Eastern Europe and the Commonwealth of Independent States during the first two decades since the beginning of transition. These countries, which had undeveloped financial systems under Communism, provide an interesting test of the relationship between financial development and growth...

Privatization, Market Liberalization and Learning in Transition Economies

Privatization and market liberalization are widely considered to be complementary reforms in transition economies. This article challenges this view and the closely related " big bang " approach: when pursued too vigorously, privatization may impede the transition process following liberalization. Our result is based on an explicit model of market learning. Compared to a mature market, a market...

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