Privatization and Natural Advantage
53 Pages Posted: 9 Aug 2015 Last revised: 11 Aug 2015
Date Written: July 15, 2015
We investigate the role of natural advantage (substantial oil reserves or mineral deposits) in the shaping of privatization policies. We find that governments tend to retain high ownership in natural advantage based firms. In addition, our results suggest the existence of too-big-to-relinquish firms in the natural advantage based industries. Finally, we show that access to the sea plays an important role in the drafting of privatization policies in those industries.
Keywords: Privatization, natural advantage, rent-seeking, agglomeration economies
JEL Classification: D72, G32, L33
Suggested Citation: Suggested Citation