Inequality, Privatization and Democratic Institutions in Developing Countries
We study the distributional impact of privatization in the light of the democrati- zation process in developing countries which have recently experienced economic and political transitions. Using an unbalanced panel of 80 countries in the period 1988-2008, we find that privatization is negatively and significantly correlated with inequality when democratic institutions are well consolidated, and positively when they are not. Our evidence suggests an interesting policy implication for developing countries: only after having established mature representative political institutions, privatization appears to be related to a reduction in income inequality.
|Date of creation:||Jun 2016|
|Contact details of provider:|| Postal: Società Italiana di Economia Pubblica Corso Strada Nuova 65 27100 Pavia Italia|
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