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[Megginson and Netter, 2001; Kikeri and Kolo, 2005]. While, in recent years, the rate at which this process has taken place within developing countries has been consistently higher than in the past, state ownership represents about 10 percent of GDP in developing countries on average, suggesting there are still a lot of assets in state hands [Economic Reform Today, No. 1, 1998].
The idea behind the privatization of SOEs was to raise revenue for the state, reduce the economic distortions caused by their existence [Shirley and Walsh, 2000] and to reform those companies, which were generally non-profitable and inefficient because they had conflicting objectives...
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