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Privatization, International Asset Trade and Financial Markets

Author

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  • Guillaume Girmens

    (EPEE, Université d’Evry-Val d’Essonne)

Abstract

This paper evaluates the impact of privatization on the development of capital markets in a two-country general equilibrium model. We draw particular attention to two divestment techniques, share issue privatizations and voucher privatizations. It is shown how these two privatization methods can have an impact on private asset prices, supplies of private assets, demands for assets, market capitalizations and international asset allocation strategies. We show that even a non-marketed privatization (voucher privatization) has market-e¤ects, by altering the portfolio choice of both domestic and foreign agents.

Suggested Citation

  • Guillaume Girmens, 2001. "Privatization, International Asset Trade and Financial Markets," Documents de recherche 01-14, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    • Handle: RePEc:eve:wpaper:01-14
    as

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    References listed on IDEAS

    as
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    2. Martin, Philippe & Rey, Helene, 2004. "Financial super-markets: size matters for asset trade," Journal of International Economics, Elsevier, vol. 64(2), pages 335-361, December.
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    9. Bernardo Bortolotti & Marcella Fantini & Carlo Scarpa, 2000. "Why Do Governments Sell Privatised Companies Abroad?," William Davidson Institute Working Papers Series 293, William Davidson Institute at the University of Michigan.
    10. Demirguc-Kunt, Ash & Levine, Ross, 1996. "Stock Market Development and Financial Intermediaries: Stylized Facts," The World Bank Economic Review, World Bank, vol. 10(2), pages 291-321, May.
    11. Josef C. Brada, 1996. "Privatization Is Transition--Or Is It?," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 67-86, Spring.
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    More about this item

    Keywords

    Financial integration; International risk-sharing; Share issue privatization; Stock market development; Voucher privatization;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G1 - Financial Economics - - General Financial Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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