Are rushed privatizations substandard? Analyzing firm-level privatization under fiscal pressure

Jan Hagemejer, Jan Svejnar and Joanna Tyrowicz

No 27, GRAPE Working Papers from GRAPE Group for Research in Applied Economics

Abstract: In this paper we provide the first analysis of whether rushed privatizations, usually carried out under fiscal duress, increase or decrease firms' efficiency, scale of operation (size) and employment. Using a large panel of firm-level data from Poland over 1995-2015, we show that rushed privatization has negative efficiency, scale and employment effects relative to non-rush privatization. The negative effect of rushed privatization on the scale of operations and employment is even stronger than its negative effect on efficiency. Our results suggest that when policy makers resort to rushed privatization, they ought to weigh these negative effects against other expected effects (e.g. on fiscal revenue).

Keywords: privatization; rushed privatization; efficiency; firm size; employment; performance (search for similar items in EconPapers)
JEL-codes: C14 O16 P45 P52 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2018
New Economics Papers: this item is included in nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://grape.org.pl/WP/27_HagemejerSvejnarTyrowicz_website.pdf (application/pdf)

Related works:
Working Paper: Are Rushed Privatizations Substandard? Analyzing Firm-level Privatization under Fiscal Pressure (2018)
Working Paper: Are Rushed Privatizations Substandard? Analyzing Firm-Level Privatization under Fiscal Pressure (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:fme:wpaper:27

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