Who gets privatised? An empirical analysis of Polish manufacturing

Katarzyna Mikolajczyk and Barbara Roberts

No 04/9, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: This paper employs a multinomial logit model to examine what determines the choice of a particular firm for a given privatisation method. A variety of hypotheses about possible determinants of ownership change are tested using an extensive data set for Polish manufacturing at the beginning of transition. The results at a firm as well as at a sector level give strong support to the hypothesis of the importance of resource constraints on the choice of ownership. Large firms with high financing requirement are more likely to be owned by outsiders. High sectoral capital intensity discourages small insider owned firms while high degree of product differentiation is a constraint for different investors, with the exception of outsiders. We also find that firm quality, measured by profitability and exporting outside the Soviet block, appeals to all types of investors but, additionally, privatisation offers outsiders ways of entering sectors with substantial entry barriers.

Keywords: privatisation methods; ownership change; multinomial logit (search for similar items in EconPapers)
JEL-codes: C25 L33 P21 P31 (search for similar items in EconPapers)
Date: 2004-03
New Economics Papers: this item is included in nep-com, nep-dcm and nep-tra
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Related works:
Journal Article: WHO GETS PRIVATISED? AN EMPIRICAL ANALYSIS OF POLISH MANUFACTURING (2006)
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