IDEAS home Printed from https://ideas.repec.org/a/fip/fedder/y1998iqivp17-25.html
   My bibliography  Save this article

Privatization and the transition to a market economy

Author

Listed:
  • Jason L. Saving

Abstract

The Chinese government has announced its intention to privatize thousands of state-owned enterprises. Such an effort would dwarf recent privatizations in the industrialized West and be comparable only to the Eastern European experience following the fall of the Soviet Union. As such, an examination of the Eastern European privatization may provide valuable lessons for China and any other developing economy that embarks upon a large-scale privatization program. In this article, Jason Saving considers three problems with which Eastern European privatizations have had to contend: a scarcity of information, an inability to exercise managerial oversight, and the absence of competitive markets. He suggests that a lack of information need not prevent privatization. He explores the holding company as a potential solution to the managerial-oversight problem. And he suggests that effective privatization requires both managerial oversight and a legal framework that permits freedom of entry for competing firms.

Suggested Citation

  • Jason L. Saving, 1998. "Privatization and the transition to a market economy," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 17-25.
  • Handle: RePEc:fip:fedder:y:1998:i:qiv:p:17-25
    as

    Download full text from publisher

    File URL: http://www.dallasfed.org/assets/documents/research/er/1998/er9804b.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dyck, I J Alexander, 1997. "Privatization in Eastern Germany: Management Selection and Economic Transition," American Economic Review, American Economic Association, vol. 87(4), pages 565-597, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Europe; Eastern ; Economic policy ; Privatization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedder:y:1998:i:qiv:p:17-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Chapman). General contact details of provider: http://edirc.repec.org/data/frbdaus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.