On the Sequencing of Privatization in Transition Economies

On the Sequencing of Privatization in Transition Economies

This paper presents an empirical criterion for establishing privatization priorities for state-owned enterprises. The approach uses firm performance, defined as productive efficiency, as the basis for deciding the sequence in which firms are privatized. Sequencing is relevant because the order in which state enterprises are taken up for privatization has efficiency implications, and an appropri...

The Impact of Privatization in Transition Economies ickes comments

Management Challenges in Privatization Acquisitions in Transition Economies

Large-scale privatization was at the core of economic reform in most transition economies, except China, in the 1990’s. Privatization creates special challenges for multinational investors acquiring firms in the process. Such acquisitions differ from conventional acquisitions due to the constraints imposed on strategic action by the privatization context, the depth of subsequent restructuring, ...

Methods of Privatization and Economic Growth in Transition Economies

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...