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Privatization in Transition Countries; A Sampling of the Literature


  • Oleh Havrylyshyn
  • Donal McGettigan


This paper reviews a selection of studies on privatization experiences in transition countries. Empirical studies almost invariably show privatized enterprises outperform state enterprises. Moreover, the literature identifies de novo firms as being clearly the best performers, followed by outsider-dominated firms, while insider-dominated firms are the least efficient among those newly privatized. The importance of de novo firms in enlarging the private sector in transition economies is reviewed, along with the question of whether privatization efforts support or hinder de novo private sector development. Finally, the paper discusses the importance of providing a suitable market environment for successful private-sector development.

Suggested Citation

  • Oleh Havrylyshyn & Donal McGettigan, 1999. "Privatization in Transition Countries; A Sampling of the Literature," IMF Working Papers 99/6, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:99/6

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    Cited by:

    1. John Marangos, 2002. "A post Keynesian critique of privatization policies in transition economies," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 573-589.
    2. Mark J Flanagan, 2008. "Resolving a Large Contingent Fiscal Liability; Eastern European Experiences," IMF Working Papers 08/159, International Monetary Fund.
    3. Freinkman, Lev, 2000. "Role Of The Diasporas In Transition Economies: Lessons From Armenia," MPRA Paper 10013, University Library of Munich, Germany.
    4. Michael Andrews, 2005. "State-Owned Banks, Stability, Privatization, and Growth; Practical Policy Decisions in a World Without Empirical Proof," IMF Working Papers 05/10, International Monetary Fund.
    5. repec:scn:000pbo:110481 is not listed on IDEAS
    6. Morris Bornstein, 2000. "Post-Privatization Enterprise Restructuring," William Davidson Institute Working Papers Series 327, William Davidson Institute at the University of Michigan.
    7. Jovanovic Aleksandra & Mijatovic Bosko, 2001. "Ten Years of Privatization: Lessons for Yugoslavia," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 11(1), pages 1-18, March.
    8. Li, Hongbin & Rozelle, Scott, 2004. "Insider privatization with a tail: the screening contract and performance of privatized firms in rural China," Journal of Development Economics, Elsevier, vol. 75(1), pages 1-26, October.
    9. Bogdan STICLOSU, 2015. "Privatization in Romania – A Challenge both For the Government and For the Companies," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(3), pages 409-416, July.
    10. Anibal Insfran Pelozo, Jose, 2001. "Privatization in Paraguay: some lessons," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(5), pages 737-753.
    11. Freund, Caroline & Rijkers, Bob, 2014. "Episodes of unemployment reduction in rich, middle-income and transition economies," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 907-923.
    12. Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 189-203.
    13. Simoneti, Marko & Damijan, Joze P. & Rojec, Matija & Majcen, Boris, 2005. "Case-by-Case Versus mass privatization in transition economies: Initial owner and final seller effects on performance of firms in Slovenia," World Development, Elsevier, vol. 33(10), pages 1603-1625, October.
    14. Dobryanskaya, Tatyana Yuryevna, 1999. "The choice of ownership structure in transition economies: incomplete contract approach," ISU General Staff Papers 1999010108000017644, Iowa State University, Department of Economics.
    15. Maciej Baltowski & Tomasz Mickiewicz, 2000. "Privatisation in Poland: Ten Years After," Post-Communist Economies, Taylor & Francis Journals, vol. 12(4), pages 425-443.
    16. Li, Hongbin & Rozelle, Scott, 2001. "Insider Privatization With A Tail: The Buyout Price And Performance Of Privatized Firms In Rural China," Working Papers 11968, University of California, Davis, Department of Agricultural and Resource Economics.
    17. D'Souza, Juliet & Megginson, William & Nash, Robert, 2005. "Effect of institutional and firm-specific characteristics on post-privatization performance: Evidence from developed countries," Journal of Corporate Finance, Elsevier, vol. 11(5), pages 747-766, October.
    18. Li, Hongbin, 2003. "Government's budget constraint, competition, and privatization: evidence from China's rural industry," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 486-502, September.
    19. Wolfgang Gerstenberger & Joachim Jungfer & Heinz Schmalholz, 2002. "Standortbedingungen in Polen, Tschechien und Ungarn und die Position Sachsens im Standortwettbewerb : Gutachten im Auftrag der Wirtschaftsförderung Sachsen GmbH," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 33, April.
    20. Kakhkharov, Jakhongir, 2003. "Privatization of Corporations in Uzbekistan in Comparison with Transition Economies of Central and Eastern Europe," MPRA Paper 64129, University Library of Munich, Germany.
    21. repec:eee:reveco:v:51:y:2017:i:c:p:82-98 is not listed on IDEAS

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