Privatization in Transition Countries: A Sampling of the Literature

Privatization in Transition Countries: A Sampling of the Literature
ISBN-10
1451842279
ISBN-13
9781451842272
Category
Business & Economics
Pages
44
Language
English
Published
1999-01-01
Publisher
International Monetary Fund
Authors
Mr.Oleh Havrylyshyn, Mr.Donal McGettigan

Description

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.

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