The Impact of Public Ownership and Competition on Productivity
AbstractAre private firms more efficient than public ones? Does privatisation improve performance? In order to answer these questions, it is necessary to disentangle the impact of ownership and competition upon business performance. This paper presents empirical evidence relating to the hypothesis that public ownership and competition are determinants of firms' productivity. It concludes that public ownership has a significant negative effect on productivity and also that privatisation has a positive impact on efficiency. Furthermore, increased competition is found to have a positive effect on productivity. These results are interpreted as confirming that privatisation is effective as a means of increasing firms' efficiency, at least in a non-regulated and relatively competitive sector, such as manufacturing. Copyright 2005 Blackwell Publishing Ltd..
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Kyklos.
Volume (Year): 58 (2005)
Issue (Month): 4 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962
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- Andersson, Fredrik & Jordahl, Henrik, 2011.
"Outsourcing Public Services: Ownership, Competition, Quality and Contracting,"
2011:20, Lund University, Department of Economics.
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- Arocena, Pablo & Oliveros, Diana, 2012. "The efficiency of state-owned and privatized firms: Does ownership make a difference?," International Journal of Production Economics, Elsevier, vol. 140(1), pages 457-465.
- Jorge Pinilla & Joaquim Vergés, 2007. "Efectos De La Privatización En La Eficiencia De Iberia Líneas Aéreas De España S.A," Revista Economía y Administración, Facultad de Ciencias Económicas y Administrativas, Universidad de Concepción, vol. 69, pages 7-38, December.
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