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

Antonio Estache, Marianela Gonzalez and Lourdes Trujillo (ltrujillo@daea.ulpgc.es)

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

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.

Keywords: Competition; Efficiency; Latin America; Mexico; Port; Regulation (search for similar items in EconPapers)
Date: 2002-04
Note: SCOPUS: ar.j
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Citations: View citations in EconPapers (75)

Published in: World development (2002) v.30 n° 4,p.545-560

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