Privatization and Nationalization Cycles
This paper studies the cycles of nationalization and privatization in resource-rich economies as a prime instance of unstable institutional reform. The authors discuss the available evidence on the drivers and consequences of privatization and nati...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090831142301 http://hdl.handle.net/10986/4227 |
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okr-10986-42272021-04-23T14:02:16Z Privatization and Nationalization Cycles Chang, Roberto Hevia, Constantino Loayza, Norman AGENCY COSTS AGENCY PROBLEMS ALLOCATION AUTOREGRESSION AVERAGE PRICE BARGAINING CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL MARKETS CARTEL COMMERCIAL ENTERPRISES COMMODITIES COMMODITY COMMODITY PRICE COMPARATIVE ADVANTAGE COPPER PRICES CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATION CURRENCY DEBT DEBTS DEMOCRACY DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNTED VALUE DIVIDEND DIVIDEND TAX DIVIDENDS DOMESTIC WORKERS DRIVERS DYNAMIC ECONOMY ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC CRISES ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC GROWTH ECONOMIC REFORMS ECONOMIC SITUATION EQUATIONS EQUILIBRIUM EXCHANGE SYSTEM EXPECTED UTILITY EXPORTS FIRM PERFORMANCE FOREIGN COMPANIES FOREIGN DEBT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTOR FUNCTIONAL FORMS FUTURE RESEARCH GDP GOVERNMENT BUDGET HOLDING COMPANIES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME TAXES INCOMES INCUMBENT INNOVATION INTEREST RATE INTERNATIONAL BUSINESS INTERNATIONAL ORGANIZATION LABOR MARKET LABOR ORGANIZATIONS LABOR POLICIES LABOR PRODUCTIVITY LABOR SUPPLY LDCS LIBERALIZATION MACROECONOMICS MARGINAL COST MARGINAL VALUE MICROECONOMIC ANALYSIS MORAL HAZARD MOTIVATION MULTIPLIERS NATIONAL INCOME NATIONALIZATION NATURAL RESOURCE NATURAL RESOURCES OUTPUT OWNERSHIP RIGHTS PARTIAL PRIVATIZATION PETROLEUM PRICES POLITICAL CONTROL POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL ENVIRONMENT POLITICAL STABILITY POPULISM PRICE CHANGES PRICE CONTINGENCIES PRICE CONTROLS PRICE SUPPORTS PRIVATE HANDS PRIVATE OWNERSHIP PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATIZATIONS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTION STRUCTURE PRODUCTIVITY PROPERTY RIGHTS REAL GDP REBATES RECESSION REFERENDUM REGIME CHANGE RENTS REPUBLIC RISK AVERSE RISK AVERSION RISK SHARING SALES SOCIALISM SPREAD STATIC EQUILIBRIUM SUNK COSTS SUPPLIER TAX TAX CODE TAX RATE TAX REVENUES TAX SYSTEM TAXATION TAXATION RATES TREASURY UNEMPLOYMENT VOLATILITY WAGE STRUCTURE WAGES WEALTH WORKING CONDITIONS WORLD MARKET This paper studies the cycles of nationalization and privatization in resource-rich economies as a prime instance of unstable institutional reform. The authors discuss the available evidence on the drivers and consequences of privatization and nationalization, review the existing literature, and present illustrative case studies. This leads to the main contribution of the paper: a static and dynamic model of the choice between private and national regimes for the ownership of natural resources. In the model, the basic tradeoff is given by equality (national ownership) versus efficiency (private ownership). The connection between resource ownership and the equality-efficiency tradeoff is given by the incentives for effort that each regime elicits from workers. The resolution of the tradeoff depends on external and domestic conditions that affect the value of social welfare under each regime. This leads to a discussion of how external conditions such as the commodity price and domestic conditions such as the tax system-- affect the choice of private vs. national regimes. In particular, the analysis identifies the determinants of the observed cycles of privatization and nationalization. 2012-03-19T19:12:12Z 2012-03-19T19:12:12Z 2009-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090831142301 http://hdl.handle.net/10986/4227 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5029 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGENCY COSTS AGENCY PROBLEMS ALLOCATION AUTOREGRESSION AVERAGE PRICE BARGAINING CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL MARKETS CARTEL COMMERCIAL ENTERPRISES COMMODITIES COMMODITY COMMODITY PRICE COMPARATIVE ADVANTAGE COPPER PRICES CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATION CURRENCY DEBT DEBTS DEMOCRACY DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNTED VALUE DIVIDEND DIVIDEND TAX DIVIDENDS DOMESTIC WORKERS DRIVERS DYNAMIC ECONOMY ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC CRISES ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC GROWTH ECONOMIC REFORMS ECONOMIC SITUATION EQUATIONS EQUILIBRIUM EXCHANGE SYSTEM EXPECTED UTILITY EXPORTS FIRM PERFORMANCE FOREIGN COMPANIES FOREIGN DEBT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTOR FUNCTIONAL FORMS FUTURE RESEARCH GDP GOVERNMENT BUDGET HOLDING COMPANIES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME TAXES INCOMES INCUMBENT INNOVATION INTEREST RATE INTERNATIONAL BUSINESS INTERNATIONAL ORGANIZATION LABOR MARKET LABOR ORGANIZATIONS LABOR POLICIES LABOR PRODUCTIVITY LABOR SUPPLY LDCS LIBERALIZATION MACROECONOMICS MARGINAL COST MARGINAL VALUE MICROECONOMIC ANALYSIS MORAL HAZARD MOTIVATION MULTIPLIERS NATIONAL INCOME NATIONALIZATION NATURAL RESOURCE NATURAL RESOURCES OUTPUT OWNERSHIP RIGHTS PARTIAL PRIVATIZATION PETROLEUM PRICES POLITICAL CONTROL POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL ENVIRONMENT POLITICAL STABILITY POPULISM PRICE CHANGES PRICE CONTINGENCIES PRICE CONTROLS PRICE SUPPORTS PRIVATE HANDS PRIVATE OWNERSHIP PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATIZATIONS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTION STRUCTURE PRODUCTIVITY PROPERTY RIGHTS REAL GDP REBATES RECESSION REFERENDUM REGIME CHANGE RENTS REPUBLIC RISK AVERSE RISK AVERSION RISK SHARING SALES SOCIALISM SPREAD STATIC EQUILIBRIUM SUNK COSTS SUPPLIER TAX TAX CODE TAX RATE TAX REVENUES TAX SYSTEM TAXATION TAXATION RATES TREASURY UNEMPLOYMENT VOLATILITY WAGE STRUCTURE WAGES WEALTH WORKING CONDITIONS WORLD MARKET |
| spellingShingle |
AGENCY COSTS AGENCY PROBLEMS ALLOCATION AUTOREGRESSION AVERAGE PRICE BARGAINING CAPITAL ACCUMULATION CAPITAL INVESTMENT CAPITAL MARKETS CARTEL COMMERCIAL ENTERPRISES COMMODITIES COMMODITY COMMODITY PRICE COMPARATIVE ADVANTAGE COPPER PRICES CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATION CURRENCY DEBT DEBTS DEMOCRACY DEPRESSION DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNTED VALUE DIVIDEND DIVIDEND TAX DIVIDENDS DOMESTIC WORKERS DRIVERS DYNAMIC ECONOMY ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC CRISES ECONOMIC DEVELOPMENT ECONOMIC DOWNTURN ECONOMIC GROWTH ECONOMIC REFORMS ECONOMIC SITUATION EQUATIONS EQUILIBRIUM EXCHANGE SYSTEM EXPECTED UTILITY EXPORTS FIRM PERFORMANCE FOREIGN COMPANIES FOREIGN DEBT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTOR FUNCTIONAL FORMS FUTURE RESEARCH GDP GOVERNMENT BUDGET HOLDING COMPANIES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME TAXES INCOMES INCUMBENT INNOVATION INTEREST RATE INTERNATIONAL BUSINESS INTERNATIONAL ORGANIZATION LABOR MARKET LABOR ORGANIZATIONS LABOR POLICIES LABOR PRODUCTIVITY LABOR SUPPLY LDCS LIBERALIZATION MACROECONOMICS MARGINAL COST MARGINAL VALUE MICROECONOMIC ANALYSIS MORAL HAZARD MOTIVATION MULTIPLIERS NATIONAL INCOME NATIONALIZATION NATURAL RESOURCE NATURAL RESOURCES OUTPUT OWNERSHIP RIGHTS PARTIAL PRIVATIZATION PETROLEUM PRICES POLITICAL CONTROL POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL ENVIRONMENT POLITICAL STABILITY POPULISM PRICE CHANGES PRICE CONTINGENCIES PRICE CONTROLS PRICE SUPPORTS PRIVATE HANDS PRIVATE OWNERSHIP PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATIZATIONS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTION STRUCTURE PRODUCTIVITY PROPERTY RIGHTS REAL GDP REBATES RECESSION REFERENDUM REGIME CHANGE RENTS REPUBLIC RISK AVERSE RISK AVERSION RISK SHARING SALES SOCIALISM SPREAD STATIC EQUILIBRIUM SUNK COSTS SUPPLIER TAX TAX CODE TAX RATE TAX REVENUES TAX SYSTEM TAXATION TAXATION RATES TREASURY UNEMPLOYMENT VOLATILITY WAGE STRUCTURE WAGES WEALTH WORKING CONDITIONS WORLD MARKET Chang, Roberto Hevia, Constantino Loayza, Norman Privatization and Nationalization Cycles |
| geographic_facet |
The World Region The World Region |
| relation |
Paper is funded by the Knowledge for Change
Program (KCP),Policy Research working paper ; no. WPS 5029 |
| description |
This paper studies the cycles of
nationalization and privatization in resource-rich economies
as a prime instance of unstable institutional reform. The
authors discuss the available evidence on the drivers and
consequences of privatization and nationalization, review
the existing literature, and present illustrative case
studies. This leads to the main contribution of the paper: a
static and dynamic model of the choice between private and
national regimes for the ownership of natural resources. In
the model, the basic tradeoff is given by equality (national
ownership) versus efficiency (private ownership). The
connection between resource ownership and the
equality-efficiency tradeoff is given by the incentives for
effort that each regime elicits from workers. The resolution
of the tradeoff depends on external and domestic conditions
that affect the value of social welfare under each regime.
This leads to a discussion of how external conditions such
as the commodity price and domestic conditions such as the
tax system-- affect the choice of private vs. national
regimes. In particular, the analysis identifies the
determinants of the observed cycles of privatization and nationalization. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Chang, Roberto Hevia, Constantino Loayza, Norman |
| author_facet |
Chang, Roberto Hevia, Constantino Loayza, Norman |
| author_sort |
Chang, Roberto |
| title |
Privatization and Nationalization Cycles |
| title_short |
Privatization and Nationalization Cycles |
| title_full |
Privatization and Nationalization Cycles |
| title_fullStr |
Privatization and Nationalization Cycles |
| title_full_unstemmed |
Privatization and Nationalization Cycles |
| title_sort |
privatization and nationalization cycles |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090831142301 http://hdl.handle.net/10986/4227 |
| _version_ |
1764390497809334272 |