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Inequality, Privatization and Democratic Institutions in Developing Countries

Lidia Ceriani (), Simona Scabrosetti and Francesco Scervini ()

Working papers from Società Italiana di Economia Pubblica

Abstract: We study the distributional impact of privatization in the light of the democrati- zation process in developing countries which have recently experienced economic and political transitions. Using an unbalanced panel of 80 countries in the period 1988-2008, we find that privatization is negatively and significantly correlated with inequality when democratic institutions are well consolidated, and positively when they are not. Our evidence suggests an interesting policy implication for developing countries: only after having established mature representative political institutions, privatization appears to be related to a reduction in income inequality.

Keywords: Inequality; Democracy; Privatization; Developing countries (search for similar items in EconPapers)
JEL-codes: D30 O15 P5 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-cis, nep-dev and nep-pol
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Working Paper: Inequality, Privatization and Democratic Institutions in Developing Countries (2018) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ipu:wpaper:45

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