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Privatization in competitive environment: Evidence from Finland's manufacturing sector

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  • Lähdemäki, Sakari

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.

Suggested Citation

  • Lähdemäki, Sakari, 2024. "Privatization in competitive environment: Evidence from Finland's manufacturing sector," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 402-421.
    • Handle: RePEc:eee:jeborg:v:220:y:2024:i:c:p:402-421
    DOI: 10.1016/j.jebo.2024.02.023
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    References listed on IDEAS

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    More about this item

    Keywords

    Privatization; Productivity; Manufacturing sector; Plant-level; Generalized event study;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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