Streamlining and Privatization Prices in the Telecommunications Industry

28 Pages Posted: 25 Apr 2011

See all articles by Alberto Chong

Alberto Chong

University of Ottawa

Virgilio Galdo

Michigan State University - Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 2003

Abstract

This paper fills a void in the issue of determinants of privatization prices by concentrating in one industry across many countries. This has not been done before, as the literature has only focused on (i) many industries in one country, (ii) a single industry in one country, and (iii) many industries in many countries. We complement a recently released database with newly collected data, and we are able to cover 84 telecommunications privatizations, which account for nearly 80 percent of the sector in terms of value. Our findings are consistent with the little existing work on privatization prices, as our best policy prescription is primarily to concentrate on the transparency and cleanliness of the privatization process, as sale methods do matter. We show that government administration of labor downsizing may result in adverse selection, as the best workers are the first to leave when given the opportunity.

Suggested Citation

Chong, Alberto and Galdo, Virgilio, Streamlining and Privatization Prices in the Telecommunications Industry (February 2003). IDB Working Paper No. 402, Available at SSRN: https://ssrn.com/abstract=1818691 or http://dx.doi.org/10.2139/ssrn.1818691

Alberto Chong (Contact Author)

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

Virgilio Galdo

Michigan State University - Economics ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States
517-203-8372 (Phone)

HOME PAGE: http://search.msu.edu/people/index.php?uid=488171&prev=Galdo,%20Virgilio

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