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Who Wants To Revise Privatization? The Complementarity of Market Skills and Institutions

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  • Denisova, Irina
  • Eller, Markus
  • Frye, Timothy
  • Zhuravskaya, Ekaterina

Abstract

Using survey data from 28 transition countries, we test for the complementarity and substitutability of market-relevant skills and institutions. We show that democracy and good governance complement market skills in transition economies. Under autocracy and weak governance institutions there is no significant difference in support for revising privatization between high and low-skilled respondents. As the level of democracy and the quality of governance increases, the difference in the level of support for revising privatization between the high and low skilled grows dramatically. This finding contributes to our understanding of microfoundations of the politics of economic reform.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7260.

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Date of creation: Apr 2009
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Handle: RePEc:cpr:ceprdp:7260

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Keywords: Complementarity; Perception; Privatization; Skills; Transition;

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References

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Citations

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Cited by:
  1. Denisova, Irina & Eller, Markus & Zhuravskaya, Ekaterina, 2009. "What do Russians think about transition?," CEPR Discussion Papers 7492, C.E.P.R. Discussion Papers.
  2. Jan Hagemejer & Joanna Tyrowicz, 2009. "Is the Impact Really That High? The Effect of FDI in Transition," Working Papers 2009-02, Faculty of Economic Sciences, University of Warsaw.
  3. Di Tella, Rafael & Galiani, Sebastian & Schargrodsky, Ernesto, 2012. "Reality versus propaganda in the formation of beliefs about privatization," Journal of Public Economics, Elsevier, vol. 96(5), pages 553-567.
  4. Golinelli, Roberto & Rovelli, Riccardo, 2011. "Did Growth and Reforms Increase Citizens' Support for the Transition?," IZA Discussion Papers 5836, Institute for the Study of Labor (IZA).
  5. Irina Denisova & Markus Eller & Timothy Frye & Ekaterina Zhuravskaya, 2010. "Everyone Hates Privatization, but Why? Survey Evidence from 28 Post-Communist Countries," Working Papers w0143, Center for Economic and Financial Research (CEFIR).
  6. Sanjay Jain & Sumon Majumdar & Sharun Mukand, 2014. "Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform," CESifo Working Paper Series 4648, CESifo Group Munich.
  7. repec:cge:warwcg:155 is not listed on IDEAS
  8. Alexeev, Michael & Weber, Shlomo (ed.), 2013. "The Oxford Handbook of the Russian Economy," OUP Catalogue, Oxford University Press, number 9780199759927.
  9. Jain, Sanjay & Majumdar, Sumon & Mukand, Sharun, 2013. "Walk the Line: Conflict, State Capacity and the Political Dynamics of Reform," CAGE Online Working Paper Series 156, Competitive Advantage in the Global Economy (CAGE).

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