Privatization and Restructuring in Central and Eastern Europe: Evidence and Policy Options (World Bank Technical Paper)

Pohl, Gerhard; Anderson, Robert E.; Claessens, Stijin; Djankov, Simeon

ISBN 10: 0821339753 / ISBN 13: 9780821339756

Published by World Bank Publications, 1997

About this Item

32 Seiten ex Library Book aus einer wissenschafltichen Bibliothek Sprache: Englisch Gewicht in Gramm: 136.

Seller Inventory # 221872

Bibliographic Details

• Title: Privatization and Restructuring in Central and Eastern Europe: Evidence and Policy Options (World Bank Technical Paper)
• Publisher: World Bank Publications
• Publication Date: 1997
• Language: English
• ISBN 10: 0821339753
• ISBN 13: 9780821339756
• Binding: Taschenbuch
• Condition: Gut
• Weight: 136 grams
• Seller catalogs:
  • Alle Bücher

About this title

Synopsis

This paper analyzes the financial and operating data (1992 to 1995) for more than 6,300 industrial firms in seven countries in Central and Eastern Europe--Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovak Republic and Slovenia. The authors compare the extent of restructuring across firms in these countries to determine which country's policies are most effective in encouraging restructuring. The analysis examined the following measures of restructuring: a) profitability; b) proportion of firms with a positive operating cash flow; c) average operating cash flow as a percent of revenue; d) growth in labor productivity; e) growth in total factor productivity; and f) growth in exports. The authors next used econometric analysis to identify government policies that most encouraged firms to restructure. The study also found that privatization had a large impact on restructuring, but there was little difference in productivity between private firms in countries that used mass privatization methods and in the other countries which have used standard methods. The authors also examined the role of banks in the restructuring of firms. They concluded that recapitalizing banks to compensate for their bad loans and encouraging them to forgive bad loans is unlikely to help firms restructure very much. A safer course of action is to recapitalize banks only at the time of their privatization and after a large share of enterprises are privatized.