Privatization in Transition Countries: A Sampling of the Literature

January 1, 1999

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Oleh Havrylyshyn, and Donal McGettigan. Privatization in Transition Countries: A Sampling of the Literature, (USA: International Monetary Fund, 1999) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews a selection of studies on privatization experiences in transition countries. Empirical studies almost invariably show privatized enterprises outperform state enterprises. Moreover, the literature identifies de novo firms as being clearly the best performers, followed by outsider-dominated firms, while insider-dominated firms are the least efficient among those newly privatized. The importance of de novo firms in enlarging the private sector in transition economies is reviewed, along with the question of whether privatization efforts support or hinder de novo private sector development. Finally, the paper discusses the importance of providing a suitable market environment for successful private-sector development.

Subject: Budget planning and preparation, Competition, Economic sectors, Environment, Financial markets, Privatization, Public enterprises, Public financial management (PFM)

Keywords: Baltics, Budget planning and preparation, Competition, Competition enterprises face, De novo enterprises, Efficiency gain, Enterprise performance, Europe, Government retards enterprise restructuring, Greenfield enterprise, Mass privatization, Privatization, Privatization technique, Privatized firm, Public enterprises, State-owned enterprises, Transition, Voucher privatization, Vouchers, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/006
Stock No:

WPIEA0061999
ISBN:

9781451842272
ISSN:

1018-5941

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