TEL> Vol.4 No.7, August 2014

Privatization and Employment in Post-Communist Countries

DownloadDownload as PDF (Size:2471KB)  HTML    PP. 579-583  

ABSTRACT

In this study, by establishing a third-country trade model of an international duopoly where two state firms from different post-communist countries compete against each other, we analyze the effects of a change in the degree of privatization on firms’ labor inputs and on the optimal privatization policy in post-communist countries. We show that a rise in the degree of privatization in a country raises labor input, output and exports of that country’s firm, while reducing those of the rival firm. Furthermore, we find that either full or partial privatization of state firms could be optimal in post-communist countries.

Cite this paper

Liu, C. and Ishii, Y. (2014) Privatization and Employment in Post-Communist Countries. Theoretical Economics Letters, 4, 579-583. doi: 10.4236/tel.2014.47073.

References

[1] De Fraja, G. and Delbono, F. (1989) Alternative Strategies of a Public Enterprise in Oligopoly. Oxford Economic Papers, 41, 302-311.
[2] Fjell, K. and Pal, D. (1996) A Mixed Oligopoly in the Presence of Foreign Private Firms. Canadian Journal of Economics, 29, 737-743.
[3] Matsumura, T. (1998) Partial Privatization in Mixed Duopoly. Journal of Public Economics, 70, 473-483. http://dx.doi.org/10.1016/S0047-2727(98)00051-6
[4] White, M. (1996) Mixed Oligopoly, Privatization and Subsidization. Economics Letters, 53, 189-119. http://dx.doi.org/10.1016/S0165-1765(96)00916-0
[5] Payago-Theotok, J. (2001) Mixed Oligopoly, Subsidization and the Order of Firms Moves: An Irrelevance Result. Economic Bulletin, 12, 1-5.
[6] Kato, K. and Tomaru, Y. (2007) Mixed Oligopoly, Privatization, Subsidization, and the Order of Firms’
Moves: Several Types of Objectives. Economics Letters, 96, 287-292. http://dx.doi.org/10.1016/j.ec
onlet.2007.01.017
[7] Matsumura, T. and Tomaru, C. (2012) Market Structure and Privatization Policy under International
Competition. Japanese Economic Review, 63, 244-258. http://dx.doi.org/10.1111/j.1468-5876.2012.
00572.x
[8] Milanovic, B. (1991) Privatization in Post-communist Societies. Communist Economies and Economic Transformation, 2, 3-39.
[9] Pejovich, S. (1992) Why has the Labor-managed Firm Failed. Cato Journal, 12, 461-473.
[10] Lambertini, L. and Rossini, G. (1998) Capital Commitment and Cournot Competition with Labor-Managed and Profit-Maximizing Firms. Australian Economics Papers, 37, 14-21.
http://dx.doi.org/10.1111/1467-8454.00002
[11] Brander, J. and Spencer, B. (1985) Export Subsidies and International Market Share Rivalry. Journal of International Economics, 18, 83-100. http://dx.doi.org/10.1016/0022-1996(85)90006-6

  
comments powered by Disqus

Copyright © 2014 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.