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Industry and firm effects of privatization in Malawian oligopolistic manufacturing

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  • Ephraim W. Chirwa

Abstract

This study evaluates the impact of privatization on technical efficiency using panel data from privatized enterprises, state‐owned enterprises and private enterprises competing in oligopolistic Malawian manufacturing industries in which privatization took place. The results of the technical efficiency model, based on the period 1970–1997, provide evidence that privatization increases the technical efficiency of all firms (industry effects). Further incentives for improvements in technical efficiency are due to more domestic competition, multinationality and structural adjustment.

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  • Ephraim W. Chirwa, 2004. "Industry and firm effects of privatization in Malawian oligopolistic manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 277-289, June.
    • Handle: RePEc:bla:jindec:v:52:y:2004:i:2:p:277-289
    DOI: 10.1111/j.0022-1821.2004.00226.x
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    2. Ghulam, Yaseen, 2017. "Long-run performance of an industry after broader reforms including privatization," Research in International Business and Finance, Elsevier, vol. 42(C), pages 745-768.
    3. B.H.M. Tchereni & T.J. Sekhampu & R.F. Ndovi, 2013. "The Impact of Foreign Debt on Economic Growth in Malawi," African Development Review, African Development Bank, vol. 25(1), pages 85-90, March.
    4. Anthony E. Boardman & Claude Laurin & Mark A. Moore & Aidan R. Vining, 2009. "A Cost-Benefit Analysis of the Privatization of Canadian National Railway," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 59-83, March.
    5. Cabeza Garcia, Laura & Gomez Anson, Silvia, 2007. "The Spanish privatisation process: Implications on the performance of divested firms," International Review of Financial Analysis, Elsevier, vol. 16(4), pages 390-409.
    6. Ghulam, Yaseen & Jaffry, Shabbar, 2015. "Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation," Omega, Elsevier, vol. 54(C), pages 101-115.
    7. Diana Oliveros & Mauricio Mendoza, 2013. "¿Es la privatización la solución a los problemas de ineficiencia de las empresas públicas?: Revisión de la literatura," Revista Lebret, Universidad Santo Tomás - Bucaramanga, December.
    8. Ghulam, Yaseen, 2021. "Institutions and firms’ technological changes and productivity growth," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    9. Arocena, Pablo & Oliveros, Diana, 2012. "The efficiency of state-owned and privatized firms: Does ownership make a difference?," International Journal of Production Economics, Elsevier, vol. 140(1), pages 457-465.

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