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Politics and privatization in Central and Eastern Europe: A panel data analysis Bjørnskov and Potrafke Politics and Privatization in Central and Eastern Europe

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  • Bjørnskov, Christian
  • Potrafke, Niklas

Abstract

This article examines how government ideology influenced privatization efforts in Central and Eastern Europe after the transition from socialism. We analyse a dataset of privatization indicators covering small- and large-scale industries in 19 transition countries over the period 1990-2007 and introduce a government ideology index. The results suggest that market-oriented governments promoted the privatization of small-scale industries more than that of large-scale ones. In the rapid transition process in the early 1990s, leftist governments stuck to public ownership more strongly than in the following period from the mid-1990s to 2007. The remarkable differences between leftist and right-wing governments concerning both the role of government in the economy and the basic elements of political order are in line with developments in OECD countries, and may also hold further implications for transition and democratizing countries outside Central and Eastern Europe.

Suggested Citation

  • Bjørnskov, Christian & Potrafke, Niklas, 2011. "Politics and privatization in Central and Eastern Europe: A panel data analysis Bjørnskov and Potrafke Politics and Privatization in Central and Eastern Europe," Munich Reprints in Economics 20287, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:20287
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    Cited by:

    1. Elinder, Mikael & Jordahl, Henrik, 2013. "Political preferences and public sector outsourcing," European Journal of Political Economy, Elsevier, vol. 30(C), pages 43-57.
    2. Marcelin, Isaac & Mathur, Ike, 2015. "Privatization, financial development, property rights and growth," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 528-546.
    3. Axel Dreher & Sarah Langlotz & Silvia Marchesi, 2017. "Information Transmission And Ownership Consolidation In Aid Programs," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1671-1688, October.
    4. Bortolotti, Bernardo & Cambini, Carlo & Rondi, Laura, 2013. "Reluctant regulation," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 804-828.
    5. Cooray, Arusha & Tamazian, Artur & Vadlamannati, Krishna Chaitanya, 2014. "What drives FDI policy liberalization? An empirical investigation," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 179-189.
    6. Imam, M. & Jamasb, T. & Llorca, M., 2019. "Political Economy of Reform and Regulation in the Electricity Sector of Sub-Saharan Africa," Cambridge Working Papers in Economics 1949, Faculty of Economics, University of Cambridge.
    7. Marcin Senderski, 2015. "Inhibited privatization: a hurdle race over vested interests," European Journal of Government and Economics, Europa Grande, vol. 4(1), pages 46-66, June.
    8. Horaček Jan & Nikolić Helena, 2021. "Privatization in Croatia: Standpoint of Croatian Citizens in 1998 and 2018," Business Systems Research, Sciendo, vol. 12(1), pages 1-16, May.
    9. Lami, Endrit & Imami, Drini & Kächelein, Holger, 2016. "Fuelling political fiscal cycles by opportunistic privatization in transition economies: The case of Albania," Economic Systems, Elsevier, vol. 40(2), pages 220-231.
    10. Christian Bjørnskov, 2015. "Constitutional property rights protection and economic growth: evidence from the post-communist transition," Constitutional Political Economy, Springer, vol. 26(3), pages 247-280, September.
    11. Niklas Potrafke, 2015. "The Evidence on Globalisation," The World Economy, Wiley Blackwell, vol. 38(3), pages 509-552, March.
    12. Björn Kauder & Niklas Potrafke, 2015. "Globalization and social justice in OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 353-376, May.
    13. Berdiev, Aziz N. & Kim, Yoonbai & Chang, Chun Ping, 2012. "The political economy of exchange rate regimes in developed and developing countries," European Journal of Political Economy, Elsevier, vol. 28(1), pages 38-53.
    14. Matuszak Piotr, 2020. "What determines the scale of state ownership in enterprises? Some evidence from post-socialist countries," Economics and Business Review, Sciendo, vol. 6(4), pages 95-117, December.
    15. Songying Fang & Erica Owen, 2011. "International institutions and credible commitment of non-democracies," The Review of International Organizations, Springer, vol. 6(2), pages 141-162, July.
    16. Haiqing Hu & Di Chen & Chun‐Ping Chang & Yin Chu, 2021. "The Political Economy Of Environmental Consequences: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 250-306, February.
    17. Chang, Chun Ping & Berdiev, Aziz N., 2011. "The political economy of energy regulation in OECD countries," Energy Economics, Elsevier, vol. 33(5), pages 816-825, September.
    18. Gurgul, Henryk & Lach, Łukasz, 2014. "Globalization and economic growth: Evidence from two decades of transition in CEE," Economic Modelling, Elsevier, vol. 36(C), pages 99-107.
    19. Joscha Beckmann & Rainer Schweickert & Markus Ahlborn & Inna Melnykovska, 2020. "Drivers of Government Activity in European Countries: Do Partisan Politics Still Divide East and West?," Journal of Common Market Studies, Wiley Blackwell, vol. 58(5), pages 1235-1251, September.
    20. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.
    21. Alina Botezat & Ruben R. Seiberlich, 2011. "How Far is the East? Educational Performance in Eastern Europe," Working Paper Series of the Department of Economics, University of Konstanz 2011-15, Department of Economics, University of Konstanz.
    22. Björn Kauder & Luisa Lorenz & Niklas Potrafke, 2015. "Globalisierung und soziale Gerechtigkeit in OECD-Ländern," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(04), pages 21-26, February.
    23. Senderski, Marcin, 2015. "Inhibited privatization: a hurdle race over vested interests," MPRA Paper 65482, University Library of Munich, Germany.

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