data permit us to track the privatization process and to estimate the impact of privatization within industry-year cells … majority privatized versus state-owned firms. The gap increases with time since privatization, reaching about 15-17% five years … after privatization. It also increases with calendar time although recent privatizations are associated with smaller …

equilibrium is rapid. The relationship between FDI and the privatization process is complex. Non-direct privatization schemes … negatively affect the speed of adjustment, whereas direct privatization strategies positively affect the equilibrium itself …. Privatization history increases equilibrium FDI stocks, independently of the method applied …