Description: The Benefits of Privatization : Evidence from Mexico

Cover Image

QR Code

The Benefits of Privatization : Evidence from Mexico

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 per...

Full description

Bibliographic Details
Main Authors:	La Porta, Rafael, López-de-Silanes, Florencio
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ASSETS AVERAGE COSTS BENCHMARK BENCHMARKS COMPETITIVENESS DEBT DEREGULATION EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT EXPENDITURES FREE TRADE GDP IMPORTS INCOME LABOR COSTS LABOR FORCE MARKET COMPETITION MARKET FORCES MARKET POWER MERGERS NATIONAL OUTPUT NATURAL MONOPOLIES OPERATING EFFICIENCY OPERATING INCOME PRICE INCREASES PRICE INDEX PRIVATIZATION PRODUCERS PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY REAL WAGES SALES SAVINGS SPREAD STATE ENTERPRISES SUBSTITUTION TOTAL COSTS TRADE BARRIERS UNDERESTIMATES WAGES DENATIONALIZATION STOCKHOLDERS EMPLOYMENT SECURITY LAYOFF
Online Access:	http://documents.worldbank.org/curated/en/1997/06/441459/benefits-privatization-evidence-mexico http://hdl.handle.net/10986/11583

Description
Summary:	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).