Political Determinants of Privatisation Reforms: A Comparative Analysis in Europe

Abstract

This paper analyses the effect of political factors on privatisation reforms and considers the practical implications of such policy from a comparative point of view in Europe. According to a sample of 25 countries in 1995–2013, our findings suggest that privatisation reforms could be impeded by veto players, fragmentised governments, and political competition. These reforms tend to be used less by politicians who have been in power for a long period of time, and implemented at the start of an office term, except in the case of right-wing governments. Our findings support greater privatisation in concentrated conservative governments, especially when the next elections are about to be held.