Privatization in Competitive Environment: Evidence from Finland’s Manufacturing Sector

Abstract

This paper studies the effects of privatization on establishments/plants operating in Finland’s manufacturing sector during 1988–2012, concentrating on operational efficiency (sales/ employment). Finland’s privatizations allow considering a quasi-experimental design. Therefore, the paper utilizes standard and generalized event-study designs using a control group matched from similar private establishments. Additionally to the event where state ownership drops below 50 percent, the paper studies whether any reductions in state share affect productivity. The results suggest that privatization increases productivity due to a decrease in employment.

Journal of Economic Behavior and Organization, Volume 220, April 2024, pages 402–421.

Publication info

Date
27.02.2024
Keywords
Privatization, Productivity, Manufacturing sector, Plant-level, Generalized event study
JEL
L33, L25, D22, L60
Publisher / series
Journal of Economic Behavior and Organization, Volume 220, April 2024
Language
English
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