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The Political Economy of Privatization in Sub‐Saharan Africa

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  • Samuel Adams
  • Berhanu Mengistu

Abstract

Objective. Few studies have examined the determinants of privatization in Sub‐Saharan Africa. This study examined the macroeconomic, political, and institutional factors that drive the privatization process in Sub‐Saharan Africa. Method. We used pooled ordinary least squares regression estimation technique to analyze the determinants of privatization in 22 Sub‐Saharan African countries over a period of 12 years (1991–2002). Results. We found that inflation, income inequality, and the institutional or governance infrastructure are key determinants of privatization in Sub‐Saharan Africa. On the other hand, we did not find democracy and debt to be significantly correlated with privatization. However, countries with high debt levels that were also experiencing high inflation were more likely to privatize. Conclusion. Government leadership and, consequently, politics play a significant role in the privatization decision in Sub‐Saharan African countries.

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  • Samuel Adams & Berhanu Mengistu, 2008. "The Political Economy of Privatization in Sub‐Saharan Africa," Social Science Quarterly, Southwestern Social Science Association, vol. 89(1), pages 78-94, March.
    • Handle: RePEc:bla:socsci:v:89:y:2008:i:1:p:78-94
    DOI: 10.1111/j.1540-6237.2008.00522.x
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    1. Noemí Peña‐Miguel & Beatriz Cuadrado‐Ballesteros, 2018. "The role of governance in privatisation reforms: A European analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(5), pages 479-500, November.
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    3. Adams, Samuel & Klobodu, Edem Kwame Mensah & Apio, Alfred, 2018. "Renewable and non-renewable energy, regime type and economic growth," Renewable Energy, Elsevier, vol. 125(C), pages 755-767.
    4. Josiah, Jairos & Burton, Bruce & Gallhofer, Sonja & Haslam, Jim, 2010. "Accounting for privatisation in Africa? Reflections from a critical interdisciplinary perspective," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(5), pages 374-389.

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