Are Rushed Privatizations Substandard? Analyzing Firm-level Privatization under Fiscal Pressure

Jan Svejnar, Jan Hagemejer and Joanna Tyrowicz

No 12991, CEPR Discussion Papers from Centre for Economic Policy Research

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)
Date: 2018-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://cepr.org/publications/DP12991 (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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12991

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP12991

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().