Privatization's Impact on Private Productivity: The Case of Brazilian Iron Ore

James Schmitz and Arilton Teixeira ()

Review of Economic Dynamics, 2008, vol. 11, issue 4, 745-760

Abstract: A major motivation for the wave of privatizations of state-owned enterprises (SOEs) in the last twenty years was a belief that privatization would increase economic efficiency. There are now many studies showing most privatizations achieved this goal. Our theme is that the productivity gains from privatization are much more general and widespread than has typically been recognized in this literature. In assessing the productivity gains from privatization, the literature has only examined the productivity gains accruing at the privatized SOEs. But privatization may have significant impact on the private producers that often exist side-by-side with SOEs. In this paper we show that this was indeed the case when Brazil privatized its SOEs in the iron ore industry. That is, after their privatization, the iron ore SOEs dramatically increased their labor productivity, but so did the private iron ore companies in the industry. (Copyright: Elsevier)

Keywords: State-owned enterprises; Privatization; Productivity (search for similar items in EconPapers)
JEL-codes: L33 L70 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Working Paper: Privatization's impact on private productivity: the case of Brazilian iron ore (2004)
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DOI: 10.1016/j.red.2008.01.001

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