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Privatisation in Poland: What Was the Government Trying to Achieve?

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  • De Fraja, Gianni
  • Roberts, Barbara M

Abstract

This paper uses the sequencing of privatisation to infer the objective pursued by the Polish government in the privatisation of its large manufacturing firms in the second half of the 1990's. We construct a model of mixed oligopoly, and use it to evaluate the privatisation process; our analysis is based on the assumption that firms which furthered the government's objective function the most would be chosen to be privatised first. Our empirical analysis identifies the features of the firms that were chosen for early privatisation, and suggests that the welfare maximisation was more important than the desire to maximise the revenues from privatisation and the government's budget, or to minimise employment losses.

Suggested Citation

  • De Fraja, Gianni & Roberts, Barbara M, 2007. "Privatisation in Poland: What Was the Government Trying to Achieve?," CEPR Discussion Papers 6114, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:6114
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    14. Iraj Hashi, 2000. "The Polish National Investment Fund Programme: Mass Privatisation With a Difference?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(1), pages 87-134, April.
    15. 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.
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    Cited by:

    1. Yang, Ya-Po & Wu, Shih-Jye & Hu, Jin-Li, 2014. "Market Structure, Production Efficiency, And Privatization," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 55(1), pages 89-108, June.
    2. Hsu, Su-Ying & Lo, Chu-Ping & Wu, Shih-Jye, 2014. "The nexus of market concentration and privatization policy in mixed oligopoly," Economic Modelling, Elsevier, vol. 38(C), pages 196-203.
    3. Adam Szentpeteri & Almos Telegdy, 2009. "Political Objectives and Privatization Decisions - Selection of Firms into Privatization or Long-Term State Ownership in Romania," CERS-IE WORKING PAPERS 0926, Institute of Economics, Centre for Economic and Regional Studies.
    4. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
    5. Gupta, Nandini & Ham, Jhon C. & Svejnar, Jan, 2008. "Priorities and sequencing in privatization: Evidence from Czech firm panel data," European Economic Review, Elsevier, vol. 52(2), pages 183-208, February.
    6. Ádám Szentpéteri & Álmos Telegdy, 2010. "Political Selection Of Firms Into Privatization Programs. Evidence From Romanian Comprehensive Data," Economics and Politics, Wiley Blackwell, vol. 22(3), pages 298-328, November.
    7. Aguilera, Ruth V. & Kabbach de Castro, Luiz Ricardo & Lee, Jun Ho & You, Jihae, 2011. "Corporate Governance in Emerging Markets," Working Papers 11-0104, University of Illinois at Urbana-Champaign, College of Business.
    8. Jun Du & Xiaoxuan Liu, . "Selection, Staging and Sequencing in the Recent Chinese Privatization," Journal of Law and Economics, University of Chicago Press, vol. 58(3).
    9. Niklas Potrafke, 2010. "Labor market deregulation and globalization: empirical evidence from OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 545-571, September.
    10. Christian Bjørnskov & Niklas Potrafke, 2011. "Politics and privatization in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(2), pages 201-230, April.

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    More about this item

    Keywords

    Eastern Europe; mixed oligopoly; Poland; privatisation;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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