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The efficiency of state-owned and privatized firms: Does ownership make a difference?

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  • Arocena, Pablo
  • Oliveros, Diana

Abstract

This paper compares the pre- and post-privatization efficiency of a sample of state-owned enterprises privatized in Spain with the efficiency of their closest private competitors. We perform a two-stage double bootstrap data envelopment analysis model. In the first stage the efficiency is estimated through a bootstrapped data envelopment analysis, and then followed in the second stage by a bootstrapped truncated regression. Our results provide evidence that (i) there were no significant differences in efficiency between the state-owned enterprises and their private counterparts before privatization; and (ii) the efficiency of newly privatized firms significantly increased after their privatization, while private competitors showed no significant improvement during the same post-privatization period.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:proeco:v:140:y:2012:i:1:p:457-465
    DOI: 10.1016/j.ijpe.2012.06.029
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