Are Rushed Privatizations Substandard? Analyzing Firm-Level Privatization under Fiscal Pressure
Jan Hagemeier (),
Jan Svejnar () and
Joanna Tyrowicz ()
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Jan Hagemeier: National Bank of Poland
Jan Svejnar: Columbia University
No 11517, IZA Discussion Papers from Institute of Labor Economics (IZA)
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: P45 P52 C14 O16 (search for similar items in EconPapers)
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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:iza:izadps:dp11517
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