Privatisation Methods and Economic Growth in Transition Economies

60 Pages Posted: 10 Sep 2004

See all articles by Saul Estrin

Saul Estrin

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

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)

Giovanni Urga

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

James W. Maw

Swansea University - Department of Economics

Date Written: July 2004

Abstract

We investigate the impact of differences in privatisation method on national economic performance in transition economies. Our approach is to estimate, using dynamic panel data methods, a growth equation over 23 countries for the period 1990-2001. Among our results, we find that mass privatisation has significant positive effect on growth across a wide variety of definitions and specifications. This result holds with particular force after 1995, i.e., once the period of early transition and recession was over. Our analysis suggests that an advantage of mass privatisation was that it led spontaneously to development of the capital market, which is significantly correlated with economic growth.

Keywords: Privatization, Method, Economic Growth, Transition

JEL Classification: L33, O40, P27, P31

Suggested Citation

Estrin, Saul and Bennett, John and Urga, Giovanni and Maw, James W., Privatisation Methods and Economic Growth in Transition Economies (July 2004). FEEM Working Paper No. 105.04; Cass Business School Research Paper. Available at SSRN: https://ssrn.com/abstract=569141 or http://dx.doi.org/10.2139/ssrn.569141

Saul Estrin (Contact Author)

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

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

John Bennett

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)

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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

Singleton Park
Swansea, Wales SA2 8PP SA2 8PP
United Kingdom
+44 1792 295 168 (Phone)
+44 1792 295 872 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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

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)

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