Effects of Privatization and Ownership in Transition Economies
The paper evaluates the effects of privatization in the post-communist economies and China. In post-communist economies privatization to foreign owners results in a rapid improvement in performance of firms, while performance effects of privatizati...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090107093820 http://hdl.handle.net/10986/4009 |
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okr-10986-4009 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING SYSTEMS ALLOCATION OF RESOURCES ARREARS ASSET OWNERSHIP BANK DEBT BANKS BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKETS CAPITALISM CASE OF PRIVATIZATION CENTRAL PLANNERS CENTRAL PLANNING COLLECTIVE OWNERSHIP COMMUNIST COMPANY PERFORMANCE COMPETITIVE MARKET CONCENTRATION OF OWNERSHIP CORPORATE GOVERNANCE CORPORATE OWNERSHIP CORRUPTION CREDIT RATIONING DEBT DEPENDENT DISTRIBUTION OF INCOME DISTRIBUTION OF OWNERSHIP DIVESTITURES DIVIDEND DIVIDEND POLICY DOMESTIC FINANCING ECONOMIC ANALYSIS ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC OUTPUT ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC REFORM ECONOMIC SYSTEM ECONOMICS ECONOMICS OF TRANSITION ECONOMIES IN TRANSITION EFFECT ON EMPLOYMENT EFFECTIVE GOVERNANCE EFFICIENCY IMPROVEMENTS EMERGING MARKETS EMPLOYEE OWNERSHIP EMPLOYEE PARTICIPATION ENFORCEMENT OF LAWS ENTERPRISE EFFICIENCY ENTERPRISE PERFORMANCE ENTERPRISE RESTRUCTURING ENTREPRENEURSHIP EXECUTIVE DIRECTORS EXTENT OF PRIVATIZATION EXTERNALITIES FINANCIAL INTERMEDIARIES FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FREE ECONOMY FREE MARKETS FREE RIDER PROBLEM FULL EMPLOYMENT GENERAL EQUILIBRIUM GLOBAL PRIVATIZATION GOLDEN SHARE GOLDEN SHARES GOVERNMENT OWNERSHIP HARD BUDGET HARD BUDGET CONSTRAINTS HUMAN CAPITAL IMPACT OF PRIVATIZATION IMPACT OF PRIVATIZATION ON COMPANY IMPACT OF PRIVATIZATION ON COMPANY PERFORMANCE IMPERFECT COMPETITION INCENTIVE PROBLEMS INCOME DISTRIBUTION INFLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTITUTIONAL SETTING INTERNATIONAL BANK FOR RECONSTRUCTION INTERNATIONAL BUSINESS INTERNATIONAL TRADE INVESTMENT FUND INVESTMENT FUNDS JOB CREATION JOINT VENTURES LABOR CONTRACTS LABOR PRODUCTIVITY LARGE SHAREHOLDERS LARGE-SCALE PRIVATIZATION LEGAL FRAMEWORK LEGAL REFORM LEGAL SYSTEM LOOTING MACROECONOMIC IMPACT OF PRIVATIZATION MACROECONOMICS MAJORITY OWNERSHIP MARKET ECONOMIES MARKET ECONOMY MARKET FORCES MARKET PRICES MARKET STRUCTURE MASS PRIVATIZATION MASSIVE PRIVATIZATION METHODS OF PRIVATIZATION MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MIXED OWNERSHIP MONOPOLY POWER MUNICIPAL OWNERSHIP NATURAL MONOPOLY NOMINAL PRICES OWNERSHIP CHANGES OWNERSHIP CONCENTRATION OWNERSHIP RIGHTS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PAYMENT OF DIVIDENDS PERFORMANCE OF FIRMS PERFORMANCE OF PRIVATE POLITICAL ECONOMY OF PRIVATIZATION POLITICAL OPPOSITION PREDICTIONS PRICE LIBERALIZATION PRICE SETTING PRIVATE FIRMS PRIVATE OWNERS PRIVATE OWNERSHIP PRIVATE SECTOR PRIVATIZATION PRIVATIZATION DATA PRIVATIZATION IN TRANSITION ECONOMIES PRIVATIZATION METHODS PRIVATIZATION OF STATE PRIVATIZATION ON EMPLOYMENT PRIVATIZATION PROCEEDS PRIVATIZATION PROCESS PRIVATIZATION PROGRAMS PRIVATIZATION REVENUES PRIVATIZATION VOUCHERS PRIVATIZATIONS PROCUREMENT PRODUCTIVITY PROFIT MAXIMIZATION PROFITABILITY PROPERTY RIGHTS PROPERTY TRANSFERS PUBLIC GOODS PUBLIC POLICY RECESSION REGULATORY CONTROLS RESOURCE ALLOCATION RETURN ON ASSETS SALE OF ASSETS SALES REVENUES SHARE OWNERSHIP SHARE PRICES SHAREHOLDER PROTECTION SHAREHOLDING SOCIALIST ECONOMICS SOCIALIST ECONOMIES SOCIALIST SYSTEM STABILIZATION STAKEHOLDERS STATE CONTROL STATE MANAGERS STATE OWNERSHIP STOCK EXCHANGE TECHNICAL EFFICIENCY TRADE LIBERALIZATION TRANSFER OF OWNERSHIP TRANSFERS OF SHARES TRANSITION ECONOMIES TYPE OF OWNERSHIP VOLATILITY VOUCHER PRIVATIZATION WAGES |
| spellingShingle |
ACCOUNTING ACCOUNTING SYSTEMS ALLOCATION OF RESOURCES ARREARS ASSET OWNERSHIP BANK DEBT BANKS BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKETS CAPITALISM CASE OF PRIVATIZATION CENTRAL PLANNERS CENTRAL PLANNING COLLECTIVE OWNERSHIP COMMUNIST COMPANY PERFORMANCE COMPETITIVE MARKET CONCENTRATION OF OWNERSHIP CORPORATE GOVERNANCE CORPORATE OWNERSHIP CORRUPTION CREDIT RATIONING DEBT DEPENDENT DISTRIBUTION OF INCOME DISTRIBUTION OF OWNERSHIP DIVESTITURES DIVIDEND DIVIDEND POLICY DOMESTIC FINANCING ECONOMIC ANALYSIS ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC OUTPUT ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC REFORM ECONOMIC SYSTEM ECONOMICS ECONOMICS OF TRANSITION ECONOMIES IN TRANSITION EFFECT ON EMPLOYMENT EFFECTIVE GOVERNANCE EFFICIENCY IMPROVEMENTS EMERGING MARKETS EMPLOYEE OWNERSHIP EMPLOYEE PARTICIPATION ENFORCEMENT OF LAWS ENTERPRISE EFFICIENCY ENTERPRISE PERFORMANCE ENTERPRISE RESTRUCTURING ENTREPRENEURSHIP EXECUTIVE DIRECTORS EXTENT OF PRIVATIZATION EXTERNALITIES FINANCIAL INTERMEDIARIES FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FREE ECONOMY FREE MARKETS FREE RIDER PROBLEM FULL EMPLOYMENT GENERAL EQUILIBRIUM GLOBAL PRIVATIZATION GOLDEN SHARE GOLDEN SHARES GOVERNMENT OWNERSHIP HARD BUDGET HARD BUDGET CONSTRAINTS HUMAN CAPITAL IMPACT OF PRIVATIZATION IMPACT OF PRIVATIZATION ON COMPANY IMPACT OF PRIVATIZATION ON COMPANY PERFORMANCE IMPERFECT COMPETITION INCENTIVE PROBLEMS INCOME DISTRIBUTION INFLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTITUTIONAL SETTING INTERNATIONAL BANK FOR RECONSTRUCTION INTERNATIONAL BUSINESS INTERNATIONAL TRADE INVESTMENT FUND INVESTMENT FUNDS JOB CREATION JOINT VENTURES LABOR CONTRACTS LABOR PRODUCTIVITY LARGE SHAREHOLDERS LARGE-SCALE PRIVATIZATION LEGAL FRAMEWORK LEGAL REFORM LEGAL SYSTEM LOOTING MACROECONOMIC IMPACT OF PRIVATIZATION MACROECONOMICS MAJORITY OWNERSHIP MARKET ECONOMIES MARKET ECONOMY MARKET FORCES MARKET PRICES MARKET STRUCTURE MASS PRIVATIZATION MASSIVE PRIVATIZATION METHODS OF PRIVATIZATION MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MIXED OWNERSHIP MONOPOLY POWER MUNICIPAL OWNERSHIP NATURAL MONOPOLY NOMINAL PRICES OWNERSHIP CHANGES OWNERSHIP CONCENTRATION OWNERSHIP RIGHTS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PAYMENT OF DIVIDENDS PERFORMANCE OF FIRMS PERFORMANCE OF PRIVATE POLITICAL ECONOMY OF PRIVATIZATION POLITICAL OPPOSITION PREDICTIONS PRICE LIBERALIZATION PRICE SETTING PRIVATE FIRMS PRIVATE OWNERS PRIVATE OWNERSHIP PRIVATE SECTOR PRIVATIZATION PRIVATIZATION DATA PRIVATIZATION IN TRANSITION ECONOMIES PRIVATIZATION METHODS PRIVATIZATION OF STATE PRIVATIZATION ON EMPLOYMENT PRIVATIZATION PROCEEDS PRIVATIZATION PROCESS PRIVATIZATION PROGRAMS PRIVATIZATION REVENUES PRIVATIZATION VOUCHERS PRIVATIZATIONS PROCUREMENT PRODUCTIVITY PROFIT MAXIMIZATION PROFITABILITY PROPERTY RIGHTS PROPERTY TRANSFERS PUBLIC GOODS PUBLIC POLICY RECESSION REGULATORY CONTROLS RESOURCE ALLOCATION RETURN ON ASSETS SALE OF ASSETS SALES REVENUES SHARE OWNERSHIP SHARE PRICES SHAREHOLDER PROTECTION SHAREHOLDING SOCIALIST ECONOMICS SOCIALIST ECONOMIES SOCIALIST SYSTEM STABILIZATION STAKEHOLDERS STATE CONTROL STATE MANAGERS STATE OWNERSHIP STOCK EXCHANGE TECHNICAL EFFICIENCY TRADE LIBERALIZATION TRANSFER OF OWNERSHIP TRANSFERS OF SHARES TRANSITION ECONOMIES TYPE OF OWNERSHIP VOLATILITY VOUCHER PRIVATIZATION WAGES Estrin, Saul Hanousek, Jan Kocenda, Evzen Svejnar, Jan Effects of Privatization and Ownership in Transition Economies |
| geographic_facet |
The World Region The World Region East Asia and Pacific East Asia and Pacific East Asia Asia |
| relation |
Policy Research working paper ; no. WPS 4811 |
| description |
The paper evaluates the effects of
privatization in the post-communist economies and China. In
post-communist economies privatization to foreign owners
results in a rapid improvement in performance of firms,
while performance effects of privatization to domestic
owners are less impressive and vary across regions,
coinciding with differences in policies and institutional
development. In China relatively more estimates suggest that
privatization to domestic owners improves the level of
performance. Concentrated private ownership has a stronger
positive effect on performance than dispersed ownership in
the post-communist economies, but foreign joint ventures
rather than wholly owned foreign firms have a positive
effect in China. Worker or collective ownership does not
have a negative effect. In the post-communist economies new
firms are equally or more efficient than firms privatized to
domestic owners, and foreign start-ups are more efficient
than domestic ones. Privatization is not associated with
lower employment. When accompanied by complementary reforms,
privatization has a positive effect on economic growth.
Three factors appear to drive the more positive effect of
privatization to foreign than domestic owners. Domestic
managers have more limited skills and access to world
markets, domestically privatized firms have been more
subject to tunneling and in some countries new large
shareholders artificially decreased performance. The
important policy implication is that privatization per se
does not guarantee improved performance, at least not in the
short- to medium-run. Type of private ownership, corporate
governance, access to know-how and markets, and the legal
and institutional system matter for firm performance. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Estrin, Saul Hanousek, Jan Kocenda, Evzen Svejnar, Jan |
| author_facet |
Estrin, Saul Hanousek, Jan Kocenda, Evzen Svejnar, Jan |
| author_sort |
Estrin, Saul |
| title |
Effects of Privatization and Ownership in Transition Economies |
| title_short |
Effects of Privatization and Ownership in Transition Economies |
| title_full |
Effects of Privatization and Ownership in Transition Economies |
| title_fullStr |
Effects of Privatization and Ownership in Transition Economies |
| title_full_unstemmed |
Effects of Privatization and Ownership in Transition Economies |
| title_sort |
effects of privatization and ownership in transition economies |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090107093820 http://hdl.handle.net/10986/4009 |
| _version_ |
1764389469928030208 |
| spelling |
okr-10986-40092021-04-23T14:02:14Z Effects of Privatization and Ownership in Transition Economies Estrin, Saul Hanousek, Jan Kocenda, Evzen Svejnar, Jan ACCOUNTING ACCOUNTING SYSTEMS ALLOCATION OF RESOURCES ARREARS ASSET OWNERSHIP BANK DEBT BANKS BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKETS CAPITALISM CASE OF PRIVATIZATION CENTRAL PLANNERS CENTRAL PLANNING COLLECTIVE OWNERSHIP COMMUNIST COMPANY PERFORMANCE COMPETITIVE MARKET CONCENTRATION OF OWNERSHIP CORPORATE GOVERNANCE CORPORATE OWNERSHIP CORRUPTION CREDIT RATIONING DEBT DEPENDENT DISTRIBUTION OF INCOME DISTRIBUTION OF OWNERSHIP DIVESTITURES DIVIDEND DIVIDEND POLICY DOMESTIC FINANCING ECONOMIC ANALYSIS ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC OUTPUT ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC REFORM ECONOMIC SYSTEM ECONOMICS ECONOMICS OF TRANSITION ECONOMIES IN TRANSITION EFFECT ON EMPLOYMENT EFFECTIVE GOVERNANCE EFFICIENCY IMPROVEMENTS EMERGING MARKETS EMPLOYEE OWNERSHIP EMPLOYEE PARTICIPATION ENFORCEMENT OF LAWS ENTERPRISE EFFICIENCY ENTERPRISE PERFORMANCE ENTERPRISE RESTRUCTURING ENTREPRENEURSHIP EXECUTIVE DIRECTORS EXTENT OF PRIVATIZATION EXTERNALITIES FINANCIAL INTERMEDIARIES FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEMS FIRM PERFORMANCE FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN OWNERSHIP FREE ECONOMY FREE MARKETS FREE RIDER PROBLEM FULL EMPLOYMENT GENERAL EQUILIBRIUM GLOBAL PRIVATIZATION GOLDEN SHARE GOLDEN SHARES GOVERNMENT OWNERSHIP HARD BUDGET HARD BUDGET CONSTRAINTS HUMAN CAPITAL IMPACT OF PRIVATIZATION IMPACT OF PRIVATIZATION ON COMPANY IMPACT OF PRIVATIZATION ON COMPANY PERFORMANCE IMPERFECT COMPETITION INCENTIVE PROBLEMS INCOME DISTRIBUTION INFLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTITUTIONAL SETTING INTERNATIONAL BANK FOR RECONSTRUCTION INTERNATIONAL BUSINESS INTERNATIONAL TRADE INVESTMENT FUND INVESTMENT FUNDS JOB CREATION JOINT VENTURES LABOR CONTRACTS LABOR PRODUCTIVITY LARGE SHAREHOLDERS LARGE-SCALE PRIVATIZATION LEGAL FRAMEWORK LEGAL REFORM LEGAL SYSTEM LOOTING MACROECONOMIC IMPACT OF PRIVATIZATION MACROECONOMICS MAJORITY OWNERSHIP MARKET ECONOMIES MARKET ECONOMY MARKET FORCES MARKET PRICES MARKET STRUCTURE MASS PRIVATIZATION MASSIVE PRIVATIZATION METHODS OF PRIVATIZATION MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MIXED OWNERSHIP MONOPOLY POWER MUNICIPAL OWNERSHIP NATURAL MONOPOLY NOMINAL PRICES OWNERSHIP CHANGES OWNERSHIP CONCENTRATION OWNERSHIP RIGHTS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PAYMENT OF DIVIDENDS PERFORMANCE OF FIRMS PERFORMANCE OF PRIVATE POLITICAL ECONOMY OF PRIVATIZATION POLITICAL OPPOSITION PREDICTIONS PRICE LIBERALIZATION PRICE SETTING PRIVATE FIRMS PRIVATE OWNERS PRIVATE OWNERSHIP PRIVATE SECTOR PRIVATIZATION PRIVATIZATION DATA PRIVATIZATION IN TRANSITION ECONOMIES PRIVATIZATION METHODS PRIVATIZATION OF STATE PRIVATIZATION ON EMPLOYMENT PRIVATIZATION PROCEEDS PRIVATIZATION PROCESS PRIVATIZATION PROGRAMS PRIVATIZATION REVENUES PRIVATIZATION VOUCHERS PRIVATIZATIONS PROCUREMENT PRODUCTIVITY PROFIT MAXIMIZATION PROFITABILITY PROPERTY RIGHTS PROPERTY TRANSFERS PUBLIC GOODS PUBLIC POLICY RECESSION REGULATORY CONTROLS RESOURCE ALLOCATION RETURN ON ASSETS SALE OF ASSETS SALES REVENUES SHARE OWNERSHIP SHARE PRICES SHAREHOLDER PROTECTION SHAREHOLDING SOCIALIST ECONOMICS SOCIALIST ECONOMIES SOCIALIST SYSTEM STABILIZATION STAKEHOLDERS STATE CONTROL STATE MANAGERS STATE OWNERSHIP STOCK EXCHANGE TECHNICAL EFFICIENCY TRADE LIBERALIZATION TRANSFER OF OWNERSHIP TRANSFERS OF SHARES TRANSITION ECONOMIES TYPE OF OWNERSHIP VOLATILITY VOUCHER PRIVATIZATION WAGES The paper evaluates the effects of privatization in the post-communist economies and China. In post-communist economies privatization to foreign owners results in a rapid improvement in performance of firms, while performance effects of privatization to domestic owners are less impressive and vary across regions, coinciding with differences in policies and institutional development. In China relatively more estimates suggest that privatization to domestic owners improves the level of performance. Concentrated private ownership has a stronger positive effect on performance than dispersed ownership in the post-communist economies, but foreign joint ventures rather than wholly owned foreign firms have a positive effect in China. Worker or collective ownership does not have a negative effect. In the post-communist economies new firms are equally or more efficient than firms privatized to domestic owners, and foreign start-ups are more efficient than domestic ones. Privatization is not associated with lower employment. When accompanied by complementary reforms, privatization has a positive effect on economic growth. Three factors appear to drive the more positive effect of privatization to foreign than domestic owners. Domestic managers have more limited skills and access to world markets, domestically privatized firms have been more subject to tunneling and in some countries new large shareholders artificially decreased performance. The important policy implication is that privatization per se does not guarantee improved performance, at least not in the short- to medium-run. Type of private ownership, corporate governance, access to know-how and markets, and the legal and institutional system matter for firm performance. 2012-03-19T19:08:13Z 2012-03-19T19:08:13Z 2009-01-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090107093820 http://hdl.handle.net/10986/4009 English Policy Research working paper ; no. WPS 4811 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region East Asia and Pacific East Asia and Pacific East Asia Asia |