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A Positive Theory of Privatisation for Sub-Saharan Africa

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  • Laffont, Jean-Jacques
  • Meleu, Mathieu

Abstract

We build a simple positive theory of privatisation for countries where governments have private agendas. Privatisation occurs when the rulers of the country can fetch enough shares in the newly created firms to compensate them from the private benefits they were deriving from public firms. The comparative statics of the model suggests a relationship between the level of privatisation and the level of corruption which has an inverted U-shape. A brief look at data from Sub-Saharan Africa does not reject this hypothesis. Copyright 1999 by Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 8 (1999)
Issue (Month): 0 (December)
Pages: 30-67

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Handle: RePEc:oup:jafrec:v:8:y:1999:i:0:p:30-67

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Cited by:
  1. Antonio Estache & L. Wren-Lewis, 2009. "Towards a Theory of Regulation for Developing Countries: Following Jean-Jacques Laffont's Lead," ULB Institutional Repository 2013/43903, ULB -- Universite Libre de Bruxelles.
  2. Paul G. Hare & Junior R. Davis, 2006. "Institutions and Development: What We (Think We) Know, What We Would Like to Know," CERT Discussion Papers 0603, Centre for Economic Reform and Transformation, Heriot Watt University.
  3. Eric Maskin, 2004. "Jean-Jacques Laffont: A Look Back," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 913-923, 09.
  4. Tina Søreide & Kjetil Bjorvatn, 2003. "Corruption and market reform," CMI Working Papers WP 2003:7, CMI (Chr. Michelsen Institute), Bergen, Norway.

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