The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Privatization Impacts in Transition Economies

  • Saul Estrin
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2547

Abstract

This article addresses the large-scale privatization processes in central and eastern Europe. It explains why reformers placed such emphasis on privatization and the practical problems posed by the scale of state ownership under communism, leading to the widespread use of mass privatization. As a result ownership changes were huge and extremely rapid but the improvement in corporate governance was more questionable. The empirical findings about the impact on enterprise performance are patchy, though on balance the effect has been positive, especially in countries with stronger institutions or where the new owners have been foreigners.

Keywords

Agency chains Asymmetric information Capital market Company performance Concentration of ownership Corporate governance Corruption Foreign direct investment Free rider problem Growth Insider ownership Intermediate agents Management–employee buyouts Monitor Opportunity costs Outsider ownership Ownership and control Privatization Privatization in transition economies Privatization vouchers Productive efficiency Property rights Rent seeking Restitution Soft budget constraint Takeovers Transition economies 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Saul Estrin
    • 1
  1. 1.