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 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).

• Publication year

  1997

• Venue

  Quarterly Journal of Economics

• Publication date

  1997-06-01

• Fields of study

  Economics

• Identifiers
  DOI 10.2139/SSRN.136948
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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