Privatization Methods and Economic Growth in Transition Economies

33 Pages Posted: 7 Apr 2004

See all articles by John Bennett

John Bennett

Brunel University London - Economics and Finance; Institute for the Study of Labor (IZA); University of Wales, Swansea - School of Business and Economics; Centre for Economic Policy Research (CEPR)

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

James W. Maw

Swansea University - Department of Economics

Giovanni Urga

Cass Business School, Faculty of Finance, London, UK and Bergamo University, Italy

Date Written: March 2004

Abstract

We investigate, using dynamic panel data techniques, the impact of differences in privatization methods, and in private sector and capital market development, on economic growth in transition economies. Mass privatization is found to be the only privatization method to have had a significant positive effect on growth. Stock market development has also had a significant positive impact. Our analysis suggests that in economies with underdeveloped capital markets, the matching of owners to firms under full privatization will be inefficient. This finding has important implications for current privatization policy in developing economies.

Keywords: Privatization methods, economic growth, transition

JEL Classification: L33, O40, P27, P31

Suggested Citation

Bennett, John and Estrin, Saul and Maw, James W. and Urga, Giovanni, Privatization Methods and Economic Growth in Transition Economies (March 2004). CEPR Discussion Paper No. 4291. Available at SSRN: https://ssrn.com/abstract=527604

John Bennett (Contact Author)

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom
+44 1895 816 201 (Phone)
+44 1895 203 384 (Fax)

Institute for the Study of Labor (IZA)

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Germany

University of Wales, Swansea - School of Business and Economics ( email )

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Swansea, Wales SA2 8PP SA2 8PP
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Centre for Economic Policy Research (CEPR)

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United Kingdom

Saul Estrin

London School of Economics & Political Science (LSE) ( email )

Houghton Street
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United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

James W. Maw

Swansea University - Department of Economics ( email )

James Callaghan Bldg.
Singleton Park Room 223
Swansea SA2 8PP
United Kingdom
+44 1792 295 168, ext. 40 (Phone)
+44 1792 295 716 (Fax)

Giovanni Urga

Cass Business School, Faculty of Finance, London, UK and Bergamo University, Italy ( email )

108 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44 20 7040 8698 (Phone)
+44 20 7040 8881 (Fax)

HOME PAGE: http://www.cass.city.ac.uk/faculty/g.urga

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