Article

Privatization Methods and Economic Growth in Transition Economies

04/2004;
Source: RePEc

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.

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    • "This is probably due to the fact that in most developed economies the share of the private sector in GDP does not vary to a great extent. Bennett [5] examined the effects of PSD on economic performance, using a panel data on 26 transition economies for the period (1991-2003). The methodology was aimed at examining the effect of growth in factor inputs (capital market and private sector development) on GDP growth. "
    Theoretical Economics Letters 01/2014; 04(04):279-288. DOI:10.4236/tel.2014.44038
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    • "The privatization processes due to existing theory and lack of practice, triggered three basic methods of privatization depending on the country, institutional and intellectual environment (Bennett, 2004a, 2004b) : 1. MASS privatization -firms sold at a zero (or nominal) price 2. FULL privatization -firms sold to outsiders for positive prices 3. MIXED privatization -manager-employee buyouts (MEBOs), leased buyouts and all other cases. "
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    ABSTRACT: This paper is to be concerned with the corporate governance mechanisms’ influence on governance and enterprise restructuring in Southeast Europe (Western Balkans) transition economies: Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro and Serbia. The institutional changes and corporate governance mechanisms in national governance systems are essentially important for the transition process, thus there are specificities of corporate governance mechanisms in transition economies that indicate the progress towards market based economy. Most notable are: the market-based corporate governance mechanisms, management-structure based corporate governance mechanisms, ownership structure, boards of directors, management compensations schemes, that is, management structures and financial structures. Corporate governance mechanisms are seen through governance and enterprise restructuring indicator which has already established link to gross domestic product and foreign direct investments in the literature. The data set is of Southeast European economies, and will be examined the interrelationships between governance and enterprise restructuring, set of policies that influence the governance patterns, gross domestic product and foreign direct investments.
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    • "The privatization processes due to existing theory and lack of practice, triggered three basic methods of privatization depending on the country, institutional and intellectual environment (Bennett, 2004a, 2004b) : 1. MASS privatization -firms sold at a zero (or nominal) price 2. FULL privatization -firms sold to outsiders for positive prices 3. MIXED privatization -manager-employee buyouts (MEBOs), leased buyouts and all other cases. "
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    ABSTRACT: The research in this paper is to be focused on examining governance and enterprise restructuring in Southeast Europe (Western Balkans) transition economies. International organizations classify the following countries in Southeast Europe (Western Balkans): Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro and Serbia. The European Bank for Reconstruction and Development (EBRD) has governance and enterprise restructuring as basic indicator of economic transition and defines it as effective corporate governance and corporate control exercised through domestic financial institutions and markets, fostering market-driven restructuring. The corporate governance is most often defined in terms of the roles, responsibilities, and interactions of top management and the board of directors. Using data of Southeast European economies, will be examined the interrelationships between governance and enterprise restructuring and set of policies that influence the governance patterns.
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