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Political and economic consequences of alternative privatization strategies

Author

Listed:
  • Stefanie Lenway
  • Catherine L. Mann
  • Derek Utter

Abstract

The different approaches to large-scale privatization in Hungary, Poland, and the Czech Republic imply somewhat different patterns of corporate governance--that is, ownership, monitoring, and control of firms. Corporate governance affects economic incentives within the firm, and therefore economic performance of the firm. Similarly, patterns of ownership implied by the programs affect the distribution of gains from reform. Privatizing the large enterprises will importantly influence resource allocation, employment, and output. Consequently, the patterns of corporate governance embodied in the privatization strategies could affect macroeconomic performance and the development of constituencies in favor of or against continued reforms.

Suggested Citation

  • Stefanie Lenway & Catherine L. Mann & Derek Utter, 1993. "Political and economic consequences of alternative privatization strategies," International Finance Discussion Papers 455, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgif:455
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    File URL: http://www.federalreserve.gov/pubs/ifdp/1993/455/default.htm
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    File URL: http://www.federalreserve.gov/pubs/ifdp/1993/455/ifdp455.pdf
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    References listed on IDEAS

    as
    1. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    2. Eva Marikova Leeds, 1993. "Voucher Privatization in Czechoslovakia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 35(3), pages 19-37, September.
    3. Gatsios, Konstantine, 1992. "Privatization in Hungary: Past, Present and Future," CEPR Discussion Papers 642, C.E.P.R. Discussion Papers.
    4. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-1177, December.
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    Cited by:

    1. Valerie J. Chang & Catherine L. Mann, 1993. "Industry restructuring and export performance: evidence on the transition in Hungary," International Finance Discussion Papers 445, Board of Governors of the Federal Reserve System (U.S.).

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