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Privatization and output behavior during the transition: Methods matter!

Author

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  • Fabian Gouret

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, OEP - UPEM - Université Paris-Est Marne-la-Vallée)

Abstract

This paper clarifies what dominant methods of privatization contributed to the macroeconomic gains from privatization during the transition. Building upon the macroeconomic empirical literature on transition, our results first support the Kornai's view. Economic performance gains come only from the use of gradualsales as a primary method of privatization. However, we find that primary methods of privatization leadingto permanent changes in the ownership structure of the economies have different effects on output levelsbut not on annual growth rates.

Suggested Citation

  • Fabian Gouret, 2007. "Privatization and output behavior during the transition: Methods matter!," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00203398, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00203398
    DOI: 10.1016/j.jce.2006.12.001
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00203398
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    References listed on IDEAS

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    Cited by:

    1. Tomasz Mickiewicz, 2009. "Hierarchy of governance institutions and the pecking order of privatisation: Central-Eastern Europe and Central Asia reconsidered," Post-Communist Economies, Taylor & Francis Journals, vol. 21(4), pages 399-423.
    2. Ernesto Crivelli, 2016. "Trade liberalization and tax revenue in transition: an empirical analysis of the replacement strategy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 1-25, April.
    3. Kalyuzhnova, Yelena & Nygaard, Christian, 2008. "State governance evolution in resource-rich transition economies: An application to Russia and Kazakhstan," Energy Policy, Elsevier, vol. 36(6), pages 1829-1842, June.
    4. Ernesto Crivelli, 2012. "Local governments’ fiscal balance and privatization in transition countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(4), pages 677-703, October.
    5. Chen, Chien-Hsun & Mai, Chao-Cheng & Liu, Yu-Lin & Mai, Shin-Ying, 2009. "Privatization and optimal share release in the Chinese banking industry," Economic Modelling, Elsevier, vol. 26(6), pages 1161-1171, November.
    6. Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009. "The Effects of Privatization and Ownership in Transition Economies," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 699-728, September.
    7. da Rocha, Bruno T., 2015. "Let the markets begin: The interplay between free prices and privatisation in early transition," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 350-370.
    8. Crivelli, Ernesto, 2013. "Fiscal impact of privatization revisited: The role of tax revenues in transition economies," Economic Systems, Elsevier, vol. 37(2), pages 217-232.
    9. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 37141, October.
    10. Mico Apostolov, 2011. "Governance and Enterprise Restructuring: The Case of Macedonia," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 299-309, December.
    11. Wang F.S., Leonard & Chen, Tai-Liang, 2011. "Privatization, Efficiency Gap, and Subsidization with Excess Taxation Burden," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 52(1), pages 55-68, June.
    12. Brada, Josef C., 2016. "Corporate governance following mass privatization," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1132-1144.

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    Keywords

    Transition; Privatization; Methods;

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