EconPapers    
Economics at your fingertips  
 

Threatening to increase productivity

Benjamin Bridgman (), Victor Gomes () and Arilton Teixeira ()

MPRA Paper from University Library of Munich, Germany

Abstract: The wave of privatization in the 1980s and 1990s increased productivity of many previously state owned enterprises (SOEs). However, governments often do not have su±cient support to privatize SOEs. We provide evidence that threatening privatization and market competition (entry of new firms) can increase the productivity of SOEs, even though privatization and entry of new ¯rms does not occur. We study productivity at Brazil's state-owned oil company Petrobras. After it lost its legal monopoly Petrobras's total factor productivity increased sharply. These large gains occurred despite the fact that Petrobras faced no immediate de facto competition. The threat of competition and privatization was su±cient to generate large productivity gains. These findings suggest that changing the competitive environment can be a powerful force for improving productivity at state-owned firms.

Keywords: Productivity; Competition; Oil Industry (search for similar items in EconPapers)
JEL-codes: L20 D43 D24 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/33024/1/MPRA_paper_33024.pdf original version (application/pdf)

Related works:
Working Paper: Threatening to Increase Productivity (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:33024

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-10-03
Handle: RePEc:pra:mprapa:33024