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Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico

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  • Estache, Antonio
  • Gonzalez, Marianela
  • Trujillo, Lourdes

Abstract

This paper shows how measures of relative efficiency performance could promote yardstick competition between port infrastructure operators. The illustration is based on a study of the efficiency effects of the Mexican 1993 Port Reform. It covers 1996-99 and relies on a stochastic production frontier to show that Mexico's ports achieved 2.8-3.3% average annual efficiency gains since reform. The port-specific measures point to consistent leaders and laggards which would not all be identified by common partial productivity indicators. This information could be built into an explicit incentive-based regulatory regime aiming at promoting catch-up by laggards. © 2002 Published by Elsevier Science Ltd.
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  • Estache, Antonio & Gonzalez, Marianela & Trujillo, Lourdes, 2002. "Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico," World Development, Elsevier, vol. 30(4), pages 545-560, April.
    • Handle: RePEc:eee:wdevel:v:30:y:2002:i:4:p:545-560
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