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Leviathan resists : the endogenous relationship between privatization and firm performance

journal contribution
posted on 2009-07-01, 00:00 authored by K Arin, Mehmet UlubasogluMehmet Ulubasoglu
Using a panel dataset of privatized cement firms in Turkey, this paper models and finds support for the simultaneous relationship between privatization and firm performance. It is found that favorable short-run performance, weak market potential, higher employment, lower socio-economic development, concentrated voter preferences, and weaker representation of right-wing parties in the firms’ locality delay the timing of privatization. The paper also finds that privatization increases output in the medium-term by reducing the labor stock and promoting the adoption of more advanced technology, such that production shifts from constant to decreasing returns to scale.

History

Journal

Public choice

Volume

140

Issue

1-2

Pagination

185 - 204

Publisher

Springer New York LLC

Location

New York, N.Y.

ISSN

0048-5829

eISSN

1573-7101

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2009, Springer Science+Business Media, LLC