Privatisation and Institutions: A cross Country Analysis
Bocconi University; University of Turin
Ministry of Economy and Finance, Italy; Fondazione Eni Enrico Mattei; University of Turin - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)
National Economic Research Associates Inc. (NERA)
CESifo Working Paper Series No. 375
Privatisation, i.e. the transfer of ownership and control of state-owned enterprises, is a worldwide phenomenon. Which political, economic and institutional factors are shaping this process? This paper addresses the issue presenting new evidence from a sample of 49 countries. From an empirical analysis of the period 1977-96, the decision to privatise and the choice of privatisation method appear to be influenced by the governing political majority and public sector budget constraints, while the success of privatisation in terms of revenues and stakes sold requires suitable institutions and developed capital markets.
Number of Pages in PDF File: 40
Keywords: Privatisation, politics, budget deficit, investor protection, enforcement of law, capital markets
JEL Classification: L33, D72, G15, H6, K22
Date posted: January 28, 2001
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