How Does Privatization Work? Evidence from the Russian Shops
Yale School of Management; National Bureau of Economic Research (NBER)
Russian Privatization Center
Harvard University - Department of Economics; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)
The Boston Consulting Group
A number of recent studies have testified to the benefits of private as opposed to state ownership of firms. One research strand compares private and state firms in the same line of activity, such as air transport or railroads, and finds the former to be more efficient (see Boardman and Vining, 1989, for a survey). A second strand reveals the improvements in a given company's operations following privatization (see Megginson et al., 1994). A third strand documents the lower cost of contracting public services to private suppliers than providing it publicly (see Donahue, 1989). This research makes a convincing case for the greater efficiency of private ownership.
JEL Classification: G30working papers series
Date posted: February 28, 1995
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