Publication: The Benefits of Privatization : Evidence from Mexico
Date
1997-06
ISSN
Published
1997-06
Author(s)
La Porta, Rafael
López-de-Silanes, Florencio
Abstract
Critics of privatization often argue
that its benefits come at a high cost to society. The
authors test the validity of this criticism for
Mexico's privatization program, one of the world's
largest case-by-case programs. Assessing the performance of
newly privatized firms in such areas as profitability and
efficiency, they find that these firms quickly close the gap
with their peers in the private sector. Their findings
suggest that the firms' profit gains come from
productivity gains (52 percent), layoffs (33 percent), and
higher prices (15 percent).
Citation
“La Porta, Rafael; López-de-Silanes, Florencio. 1997. The Benefits of Privatization : Evidence from Mexico. Viewpoint: Public Policy for the Private Sector; Note No. 117. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/bab809ae-7889-5eea-a1ae-48f0780aab0c License: CC BY 3.0 IGO.”
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