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The Political Economy of Privatization in Rich Democracies$
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Herbert Obinger, Carina Schmitt, and Stefan Traub

Print publication date: 2016

Print ISBN-13: 9780199669684

Published to Oxford Scholarship Online: March 2016

DOI: 10.1093/acprof:oso/9780199669684.001.0001

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The Determinants of Privatization

The Determinants of Privatization

Empirical Findings

Chapter:
(p.70) 5 The Determinants of Privatization
Source:
The Political Economy of Privatization in Rich Democracies
Author(s):

Herbert Obinger

Carina Schmitt

Stefan Traub

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199669684.003.0005

Using multivariate regression analysis and spatial econometrics, this chapter examines the determinants of privatization in twenty advanced democracies between 1980 and 2007. Particular emphasis is devoted to the impact of political parties and the role played by political and legal institutions. Moreover, the chapter examines whether and to what extent privatization was shaped by policy diffusion. The chapter proceeds in five steps. In a first section, it investigates whether privatization activities in advanced democracies led to policy convergence over time. Next, it studies how different constitutional settings have influenced the scope and timing of privatization. The following section investigates the impact of political parties on privatizing state-owned enterprises, while the next section examines whether privatization can be attributed to policy diffusion. The final section provides a summary of the major empirical findings.

Keywords:   determinants of privatization, policy diffusion, spatial econometrics, convergence analysis, institutions, partisan preferences, constitutional provisions, OECD

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