Efficiency effect of privatization in the developing countries
AbstractPrivatization gained considerable momentum in the developing world in the 1980s. The motives were many, but the hope for higher economic efficiency underlined the expectations of the implementing governments and agencies in the developing countries. While the merits of a market-based economic system are well established under certain theoretical conditions, far less is known of its empirical relevance in the developing world. Yet, to the best of the author's knowledge, no empirical study has examined the macro-efficiency effect of privatization in the developing countries. Studies concerned with this issue often limit themselves to the impact of privatization at the firm level for a small number of companies and countries. Thus, the current study is an attempt to provide a systematic quantitative measure of the magnitude of the macroeconomic effect of privatization in 45 developing countries. Using the concept of frontier production function, efficiency differences between developing countries with differing degrees of private sector contribution in the economy are estimated. The empirical findings suggest, ceteris paribus, that developing countries can increase the utility of their national resources by approximately 45% simply by converting to market-based economies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 34 (2002)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jellal, Mohamed & wolff, François-Charles, 2003.
"Privatisation et négociation collective
[Privatization and collective bargaining]," MPRA Paper 38367, University Library of Munich, Germany.
- Haselip, James & Hilson, Gavin, 2005. "Winners and losers from industry reforms in the developing world: experiences from the electricity and mining sectors," Resources Policy, Elsevier, vol. 30(2), pages 87-100, June.
- Månsson, Jonas & Salas, Osvaldo, 2006. "Productivity development and privatisation of the potable water and sewage sector in Chile," CAFO Working Papers 2006:5, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
- Hongbin Li & Qian Wang, 2005. "Partial privatization and screening," Applied Economics Letters, Taylor & Francis Journals, vol. 12(11), pages 653-655.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.