Privatization in competitive sectors : the record to date
AbstractThe paper reviews recent evidence on the impact of privatization. It focuses on traditional privatization efforts involving firms in competitive markets. It shows that privatization improves firms'financial and operating performance, yields positive fiscal and macroeconomic benefits (proceeds are saved rather than spent, transfers decline, and governments start collecting taxes from privatized firms), and improves overall welfare. The popular view that privatization always leads to layoffs is unfounded. While highly protected firms have seen significant declines in net employment, competitive firms generally experienced slight declines if any. Privatization's effects on wealth and income distribution have only recently been receiving the attention of analysts, and research is just getting underway. The paper highlights the conditions for successful privatization: strong political commitment combined with wider public understanding of and support for the process; creation of competitive markets through removal of entry and exit barriers, financial sector reforms that create commercially oriented banking systems, effective regulatory frameworks that reinforce the benefits of private ownership; transparency in the privatization process; and measures to mitigate adverse social and environmental effects.
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 InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2860.
Date of creation: 30 Jun 2002
Date of revision:
Banks&Banking Reform; Non Bank Financial Institutions; Municipal Financial Management; Financial Crisis Management&Restructuring; Trade Finance and Investment; Municipal Financial Management; Financial Crisis Management&Restructuring; Non Bank Financial Institutions; Economic Systems; Banks&Banking Reform;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Josef C. Brada, 1996. "Privatization Is Transition--Or Is It?," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 67-86, Spring.
- Hua Wang & Wheeler, David, 2000. "Endogenous enforcement and effectiveness of China's pollution levy system," Policy Research Working Paper Series 2336, The World Bank.
- Nicolas Barberis & Maxin Boycho & Andrei Shleifer & Natalia Tsukanova, 1995.
"How Does Privatization Work? Evidence from the Russian Shops,"
Harvard Institute of Economic Research Working Papers
1721, Harvard - Institute of Economic Research.
- Barberis, Nicholas & Maxim Boycko & Andrei Shleifer & Natalia Tsukanova, 1996. "How Does Privatization Work? Evidence from the Russian Shops," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 764-90, August.
- Barberis, Nicholas & Boycko, Maxim & Shleifer, Andrei & Tsukanova, Natalia, 1996. "How Does Privatization Work? Evidence from the Russian Shops," Scholarly Articles 3451306, Harvard University Department of Economics.
- Nicholas Barberis & Maxim Boycko & Andrei Shleifer & Natalia Tsukanova, 1995. "How Does Privatization Work? Evidence from the Russian Shops," NBER Working Papers 5136, National Bureau of Economic Research, Inc.
- Newbery, David M & Pollitt, Michael G, 1997. "The Restructuring and Privatization of Britain's CEGB--Was It Worth It?," Journal of Industrial Economics, Wiley Blackwell, vol. 45(3), pages 269-303, September.
- John Earle & Saul Estrin, 2003.
"Privatization, Competition, and Budget Constraints: Disciplining Enterprises in Russia,"
Economic Change and Restructuring,
Springer, vol. 36(1), pages 1-22, March.
- John S. Earle & Saul Estrin, . "Privatization, Competition, and Budget Constraints: Disciplining Enterprises in Russia," Upjohn Working Papers and Journal Articles jse20032, W.E. Upjohn Institute for Employment Research.
- Chisari, Omar & Estache, Antonio & Romero, Carlos, 1997.
"Winners and losers from utility privatization in Argentina : lessons from a general equilibrium model,"
Policy Research Working Paper Series
1824, The World Bank.
- Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from Utility Privatization in Argentina. Lessons from a General Equilibrium Model," UADE Working Papers 3_1999, Instituto de Economía, Universidad Argentina de la Empresa.
- Shirley, Mary & Walsh, Patrick, 2000. "Public versus private ownership : the current state of the debate," Policy Research Working Paper Series 2420, The World Bank.
- Paul J. Siegelbaum & Khaled Sherif & Michael Borish & George Clarke, 2002. "Structural Adjustment in the Transition : Case Studies from Albania, Azerbaijan, Kyrgyz Republic, and Moldova," World Bank Publications, The World Bank, number 14052, January.
- Boardman, Anthony E & Vining, Aidan R, 1989. "Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 1-33, April.
- Rama, Martin, 1999. "Public Sector Downsizing: An Introduction," World Bank Economic Review, World Bank Group, vol. 13(1), pages 1-22, January.
- Lizal, Lubomir & Singer, Miroslav & Svejnar, Jan, 1997. "Enterprise Break-ups and Performance During the Transition," CEPR Discussion Papers 1757, C.E.P.R. Discussion Papers.
- Smith, Stephen C. & Cin, Beom-Cheol & Vodopivec, Milan, 1997. "Privatization Incidence, Ownership Forms, and Firm Performance: Evidence from Slovenia," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 158-179, October.
- Majumdar, Sumit K, 1998. " Assessing Comparative Efficiency of the State-Owned Mixed and Private Sectors in Indian Industry," Public Choice, Springer, vol. 96(1-2), pages 1-24, July.
- Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2000. "Utility privatization and the needs of the poor in Latin America - Have we learned enough to get it right?," Policy Research Working Paper Series 2407, The World Bank.
- Groves, Theodore, et al, 1994. "Autonomy and Incentives in Chinese State Enterprises," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 183-209, February.
- Vining, Aidan R & Boardman, Anthony E, 1992. " Ownership versus Competition: Efficiency in Public Enterprise," Public Choice, Springer, vol. 73(2), pages 205-39, March.
- Shirley, Mary M & Xu, Lixin Colin, 2001. "Empirical Effects of Performance Contracts: Evidence from China," Journal of Law, Economics and Organization, Oxford University Press, vol. 17(1), pages 168-200, April.
- J. Luis Guasch & Jean-Jacques Laffont & Stephane Straub, 2004.
"Renegotiation of Concession Contracts in Latin America,"
ESE Discussion Papers
103, Edinburgh School of Economics, University of Edinburgh.
- Guasch, J. Luis & Laffont, Jean-Jacques & Straub, Stephane, 2003. "Renegotiation of concession contracts in Latin America," Policy Research Working Paper Series 3011, The World Bank.
- Panagiotis Staikouras, 2004. "Structural Reform Policy: Privatisation and Beyondâ€”The Case of Greece," European Journal of Law and Economics, Springer, vol. 17(3), pages 373-398, May.
- Martimort, David & Straub, Stéphane, 2009. "Infrastructure privatization and changes in corruption patterns: The roots of public discontent," Journal of Development Economics, Elsevier, vol. 90(1), pages 69-84, September.
- J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications, The World Bank, number 15024, January.
- Wolf, C. & Pollitt, M.G., 2008. "Privatising national oil companies: Assessing the impact on firm performance," Cambridge Working Papers in Economics 0811, Faculty of Economics, University of Cambridge.
- Huei-Wen Pao & Hsueh-Liang Wu & Wei-Hwa Pan, 2008. "The road to liberalization: Policy design and implementation of Taiwan’s privatization," International Economics and Economic Policy, Springer, vol. 5(3), pages 323-344, November.
- Awad, Ibrahim M., 2012. "Using econometric analysis of willingness-to-pay to investigate economic efficiency and equity of domestic water services in the West Bank," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 485-494.
- Chisari, Omar & Ferro, Gustavo, 2011.
"Tópicos de Economía de la Regulación de los Servicios Públicos,"
UADE Textos de DiscusiÃ³n
65_2011, Instituto de Economía, Universidad Argentina de la Empresa.
- Gustavo Ferro & Omar Chisari, 2010. "Tópicos de Economía de la Regulación de los Servicios Públicos," Working Papers hal-00473038, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.