Privatization in Developing Countries : An Analysis of the Performance of Newly Privatized Firms
The privatization efforts of most developing countries are inhibited by embryonic financial markets, weak regulatory capacity, and a public sector that accounts for a large share of GDP. Many, particularly those with low per capita income, lack som...
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1998/11/441579/privatization-developing-countries-analysis-performance-newly-privatized-firms http://hdl.handle.net/10986/11529 |
| Summary: | The privatization efforts of most
developing countries are inhibited by embryonic financial
markets, weak regulatory capacity, and a public sector that
accounts for a large share of GDP. Many, particularly those
with low per capita income, lack some of the main
ingredients for a successful privatization, such as capital,
entrepreneurs, and competent managers. But some of these
countries have large markets and fast economic growth rates,
features that make the success of government divestiture
more likely. This Note describes the results of a study that
set out to determine whether privatization is beneficial in
the economic environments and institutional settings of
these countries by examining how privatization affects
firms' financial and operating performance in a broad
set of developing countries. |
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