Privatization and Financial Market Development: Theoretical Issues

Chiesa, Gabriella; Nicodano, Giovanna

doi:10.2139/ssrn.383460

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Privatization and Financial Market Development: Theoretical Issues

FEEM Working Paper No. 1.2003

27 Pages Posted: 27 Feb 2003

See all articles by Gabriella Chiesa

Gabriella Chiesa

University of Bologna - Department of Economics

Giovanna Nicodano

University of Turin - Department ESOMAS; Collegio Carlo Alberto; CEPR; EGCI; Netspar

Date Written: January 2003

Abstract

Stock market capitalization in developed countries grew while massive privatization plans were in progress. It is however possible that stock market development would have occurred anyway. Below we identify features that are specific to share-issue privatizations (SIPs) and should a priori impact on market liquidity and market size. A positive correlation between such features and market development in a cross section of countries would support the claim that certain types of SIPs contribute to stock market development.

Keywords: Privatization, Financial Market Development

JEL Classification: L33, G14

Suggested Citation: Suggested Citation

Chiesa, Gabriella and Nicodano, Giovanna, Privatization and Financial Market Development: Theoretical Issues (January 2003). FEEM Working Paper No. 1.2003, Available at SSRN: https://ssrn.com/abstract=383460 or http://dx.doi.org/10.2139/ssrn.383460