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Everyone hates privatization, but why? Survey evidence from 28 post-communist countries

Listed author(s):
  • Denisova, Irina
  • Eller, Markus
  • Frye, Timothy
  • Zhuravskaya, Ekaterina

Studies of mass support for economic reform reveal a simple conclusion: Everyone hates privatization. Yet whether respondents hold this view due to a preference for state property or concerns about the legitimacy of privatization is unclear. We test these arguments using a 2006 survey of 28,000 individuals in 28 post-communist countries and find that a lack of human capital affects support for revising privatization primarily via a preference for state property over private property; whereas transition-related hardships influence support for revising privatization due to both a preference for state property and concerns about the legitimacy of privatization. These results suggest the value of analyses that not only link respondent traits with support for policy, but that also probe the motivations that underpin this support. They also indicate that opposition to privatization should not be equated with support for renationalization.

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Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 40 (2012)
Issue (Month): 1 ()
Pages: 44-61

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Handle: RePEc:eee:jcecon:v:40:y:2012:i:1:p:44-61
DOI: 10.1016/j.jce.2011.11.001
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622864

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  1. Ugo Panizza & Mónica Yañez, 2005. "Why are Latin Americans so unhappy about reforms?," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 1-29, May.
  2. Rodrik, Dani, 1995. "The Dynamics of Political Support for Reform in Economies in Transition," CEPR Discussion Papers 1115, C.E.P.R. Discussion Papers.
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  8. Irina Denisova & Markus Eller & Ekaterina Zhuravskaya, 2010. "What do Russians think about transition?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(2), pages 249-280, 04.
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  12. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
  13. Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2008. "Reality versus Propaganda in the Formation of Beliefs about Privatization," NBER Working Papers 14483, National Bureau of Economic Research, Inc.
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