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Privatization in Colombia: a plant performance analysis

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Author Info
Carlos Pombo ()
Manuel Ramirez ()

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Abstract

This paper describes the real sector privatization program in Colombia during the nineties and puts that policy in the context of general market deregulation and promotion of private investment in the provision of public infrastructure and domiciliary public services strategy. The paper evaluates the privatization program in manufacturing and power sector as case studies. It follows the ex-post measuring and econometric analysis of a set of operative and restructuring performance indicators for the privatized firms. For manufacturing, the study sample consists of 30 large manufacturing firms where the Instituto de Fomento Industrial was the founding partner. The main findings suggest that those firms followed a pro-cyclical behavior relative to their private competitors and undertook tight plant operative restructuring. For the power sector the paper studies the impact of the Regulatory Reform on market entry, ownership structure, market competition, and productive efficiency. The measurement of productive efficiency follows a Data Envelope Analysis technique based on a sample of 33 plants that count for 85% of the installed capacity in thermal generation. The sample units are plants that were active before the reform and the entrant ones that started commercial operations after the reform. The results suggest that efficiency scores in thermal generation have improved after the reform and that regulatory policy had a positive effect on productive efficiency. ********************************************************************* El artículo describe el programa de privatización en el sector real de la economía Colombiana durante los años noventa y ubica esta política en un contexto de desregulación de mercados y promoción de la inversión privada en la oferta de infraestructura publica y servicios públicos domiciliarios. El articulo evalúa el programa de privatización en los sectores manufacturero y de generación de energía eléctrica. Se hacen mediciones ex - post y análisis econométrico del desempeño de las firmas privatizadas. En el sector manufacturero la muestra analizada esta compuesta por 30 firmas manufactureras de gran tamaño, donde el Instituto de Fomento Industrial era socio fundador. Los principales resultados sugieren que estas firmas mantuvieron un comportamiento pro - cíclico relativo a su principal competidor privado y desestimaron planes drásticos de reestructuración operativa. Para el grupo de firmas de generación de energía el articulo estudia el impacto de la reforma regulatoria en el proceso de entrada al mercado, estructura de propiedad, competencia de mercado y eficiencia productiva. La medición de eficiencia productiva usa la técnica de Data Envelope Análisis para 33 plantas que representan el 85% de la capacidad instalada en la generación térmica de energía eléctrica. La muestra esta compuesta por plantas que estaban en funcionamiento antes de la reforma y las entrantes que comenzaron su operación comercial después de la reforma. Los resultados sugieren que los niveles de evidencia en la generación térmica a mejorado después de la reforma y que la política regulatoria ha tenido un efecto positivo en la eficiencia productiva.

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Paper provided by UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA in its series BORRADORES DE INVESTIGACIÓN with number 003377.

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Length: 51
Date of creation: 01 Apr 2002
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Handle: RePEc:col:000091:003377

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  1. Ligia Melo B. & Néstor Espinosa, 2004. "Ineficiencia En La Distribución De Energía Eléctrica: Una Aplicación De Las Funciones De Distancia Estocástica," BORRADORES DE ECONOMIA 002843, BANCO DE LA REPÚBLICA. [Downloadable!]
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