Date of Award

8-1-2012

Degree Name

Doctor of Philosophy

Department

Economics

First Advisor

Lahiri, Sajal

Abstract

This paper investigates the role of foreign competition and regional unemployment in influencing privatization policy for domestic firms. With a general model specifying the existence of foreign competition and regional unemployment, we find a negative relationship between presence of foreign competition and state ownership of the domestic firm within the same sector. We also find a positive relationship between unemployment rate in a region and state ownership of the domestic firm in the same region. Econometric analysis for China supports the theoretical findings.

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