The Effects of Privatization and Ownership in Transition Economies

When Does Privatization Work? the Impact of Private Ownership on Corporate Performance in the Transition Economies

This paper compares the performance of privatized and state firms in the transition economies of Central Europe, while controlling for various forms of selection bias. It argues that privatization has different effects depending on the types of owners to whom it gives control. In particular, privatization to outsider, but not insider, owners has significant performance effects. Where privatizat...

The Impact of Privatization in Transition Economies ickes comments

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...

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...