DP6603 Who Wants to Revise Privatization and Why? Evidence from 28 Post-Communist Countries

Author(s): Irina Denisova, Markus Eller, Timothy Frye, Ekaterina Zhuravskaya
Publication Date: December 2007
Keyword(s): demand for property rights, legitimacy of property rights, nationalization, privatization, property rights, revision, transition
JEL(s): L33, P20, P26, P50
Programme Areas: Public Economics, Development Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=6603

A 2006 survey of 28,000 individuals in 28 post-communist countries reveals overwhelming support for revising privatization, but most respondents prefer to leave firms in private hands. We examine who wants to revise privatization and why. Respondents with poor human capital and few assets support revising privatization due to a preference for state over private property. Economic hardships during transition increase support for revising privatization due to the perceived unfairness of privatization. The institutional environment has no impact on how human capital and asset ownership influence attitudes toward privatization, but does affect how economic hardships during transition shape these attitudes.