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From state to market: the impact of privatization on the performance of State-owned enterprises - a multiple case study in Benin

Sanni Yaya

Perspective Afrique, 2005, vol. 1, issue 1, 59-89

Abstract: The persistence of economic crisis in several developing countries has led to the reconsideration of the role of the State that came along with a privatization wave, which was characterized by the dismantling of local monopoly. For many governments, the privatization of SOEs is considered an effective mean that would improve economic efficiency and external competitiveness, and would also reduce public deficit. This paper analyzes the impact of privatization on the performance of SOEs in Benin by comparing theoretical assumptions with empirical investigation. Our results suggest that the benefits of the privatization of public enterprises in Benin are rather mitigated; they call for a reassessment of theoretical underpinning of the relationship between privatization and performance, based on a more realistic perspective.

Date: 2005
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