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The Performance of Privatised Enterprises in Developing Countries

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  • Paul Cook
  • Yuichiro Uchida

Abstract

Privatisation has been advocated as the predominant way to solve the problems facing ailing public enterprises in developing countries. Despite this, the policy remains controversial. The available empirical evidence on the operational and financial performance of enterprises after privatisation has often painted a rosy picture. This paper reassesses the situation using a larger sample of enterprises and a comparative perspective between privatised utilities, non-utilities and private enterprises that have never been state owned. The results of our analysis point to there being differences in the performance across the three groups of enterprises and, in particular, to a deterioration in performance among privatised utilities. This suggests that the earlier optimism over the efficacy of privatisation may have been premature.

Suggested Citation

  • Paul Cook & Yuichiro Uchida, 2008. "The Performance of Privatised Enterprises in Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 44(9), pages 1342-1353.
  • Handle: RePEc:taf:jdevst:v:44:y:2008:i:9:p:1342-1353 DOI: 10.1080/00220380802264838
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    Cited by:

    1. Emita W. Astami & Greg Tower & Rusmin Rusmin & John Neilson, 2010. "The effect of privatisation on performance of state-owned-enterprises in Indonesia," Asian Review of Accounting, Emerald Group Publishing, vol. 18(1), pages 5-19, May.
    2. repec:eee:riibaf:v:42:y:2017:i:c:p:745-768 is not listed on IDEAS
    3. Polterovich (Полтерович), Victor (Виктор), 2012. "Приватизация И Рациональная Структура Собственности. Часть 1. Приватизация: Проблема Эффективности
      [Privatization and the rational ownership structure. Part 1: privatization: the effeciency problem
      ," MPRA Paper 64145, University Library of Munich, Germany.
    4. Boardman, Anthony E. & Vining, Aidan R. & Weimer, David L., 2016. "The long-run effects of privatization on productivity: Evidence from Canada," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1001-1017.
    5. Ghulam, Yaseen & Jaffry, Shabbar, 2015. "Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation," Omega, Elsevier, vol. 54(C), pages 101-115.
    6. Tan, Jeff, 2012. "The Pitfalls of Water Privatization: Failure and Reform in Malaysia," World Development, Elsevier, vol. 40(12), pages 2552-2563.
    7. Polterovich, Victor, 2012. "Приватизация И Рациональная Структура Собственности. Часть 1. Приватизация: Проблема Эффективности
      [Privatization and the rational ownership structure. Part 1: privatization: the effeciency problem
      ," MPRA Paper 64371, University Library of Munich, Germany.
    8. Ngo My Tran & Ann Jorissen & Walter Nonneman, 2015. "Privatization of Vietnamese Firms and Its Effects on Firm Performance," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 202-217, February.
    9. Polterovich, Victor, 2012. "Приватизация и рациональная структура собственности (Privatizatsiya i ratsional’naya struktura sobstvennosti)
      [Privatization and the Rational Ownership Structure]
      ," MPRA Paper 41069, University Library of Munich, Germany.

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