Privatization in Transition Countries: A Sampling of the Literature

Author/Editor:

Oleh Havrylyshyn ; Donal McGettigan

Publication Date:

January 1, 1999

Electronic Access:

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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.

Series:

Working Paper No. 1999/006

Subject:

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

English

Publication Date:

January 1, 1999

ISBN/ISSN:

9781451842272/1018-5941

Stock No:

WPIEA0061999

Pages:

44

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