The Effects of Tunisian Privatization on Stock Market Dynamics During the Period 1995-2001
The IUP Journal of Applied
Fakhri Issaoui and Salem Brahim
For delivery in electronic
format: Rs. 50;
For delivery through courier (within India): Rs.
50 + Rs. 25 for Shipping & Handling Charges
To download this Article click on the button below:
The aim of this paper is to explain why an efficient privatization policy should transit through stock markets. Indeed, in theory, this method can be considered as the best for several reasons: more justice, more equity, more transparency. Also, this modality has showed its ability to imply the majority of socioeconomic groups around, one of the less popular policies especially in the less developed countries. The analyses of the Tunisian case showed that restructuring of public companies (through the stock market) had created a dynamic in the financial market size, improved market performance, and an increase in the number of savers-investors.
By the turn of the 1990s, privatization of Public Enterprises (PEs) manifested itself
economically as an irreversible solution to the poor performance of the public sector which
characterized and dominated the 1980s. Although this has started since the second half of
the 1970s, three new factors have given it a new dimension and more importantly a new
impetus in the late 1980s (Larrain and Winograd, 1996).
Firstly, the state regulation in the former socialist economies revealed its limitations and
inabilities to ensure the various macroeconomic balances that have continued to deteriorate.
Therefore, failure of centralized planning based on a generalized public ownership of means
of production required a transition to a market economy through the abolition of the public
sector and through a massive privatization movement.
Applied Finance Journal, Tunisian, Privatization, Stock Market, Dynamics, Import Substitution Industrialization (ISI), Public Enterprises (PEs), Period 1995-2001.