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Fiscal Responses to Privatisation in Transition Economies: an Empirical Assessment

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  • Lutfi Erden
  • Nasip Bolatoglu

Abstract

One objective of privatisation is to provide a favourable fiscal position. Thus, the success of privatisation depends on fiscal responses of governments to privatisation. To assess the success of privatisation, the study uses a fiscal response model as an appropriate theoretical framework, modifying it to incorporate privatisation revenues. The resulting empirical equations allow us to examine the effects of privatisation on several fiscal variables. Applying the panel data from 22 transition economies to the empirical models, we find that while privatisation revenue has no impact on debt service or borrowing, it is related positively with expenditures and negatively with revenues. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Lutfi Erden & Nasip Bolatoglu, 2015. "Fiscal Responses to Privatisation in Transition Economies: an Empirical Assessment," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(1), pages 133-143, January.
    • Handle: RePEc:wly:jintdv:v:27:y:2015:i:1:p:133-143
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