Privatisation and economic growth in developing countries

Paul Cook and Yuichiro Uchida

Journal of Development Studies, 2003, vol. 39, issue 6, 121-154

Abstract: This article re-examines the relation between privatisation and economic growth. Previous studies that have attempted to measure this relationship have concluded that privatisation has had a sizeable positive effect on economic growth. Our study uses data for 63 developing countries over the time period 1988-97. It uses the framework of an extreme-bounds analysis (EBA) to conduct a cross-country growth regression analysis. Our findings contradict earlier results, but reaffirm the view that effective competition and its regulation may need to accompany privatisation to make a positive impact on economic growth.

Date: 2003
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DOI: 10.1080/00220380312331293607

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