Publication: The Benefits of Privatization : Evidence from Mexico
La Porta, Rafael
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).
“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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PublicationSmall Business Tax Regimes(World Bank, Washington, DC, 2016-02)Simplified tax regimes for micro and small enterprises in developing countries are intended to facilitate voluntary tax compliance. However, survey evidence suggests that small business taxation based on simplified bookkeeping or turnover is sometimes perceived as too complex for microenterprises in countries with high illiteracy levels. Very simple fixed tax regimes not requiring any books or records tend to be overly popular but prone to abuse. System reforms will require more precise tailoring of the simplified regimes to their target beneficiaries, coupled with strong compliance management to detect and deter abuse. The overall objective of simplified taxation for micro and small enterprises (MSEs) in developing countries is generally to facilitate voluntary tax compliance and remove obstacles in moving toward business formalization and growth.
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