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Privatization in Italy: an analysis of factors productivity and technical efficiency

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Abstract

This work aims at investigating the changes in technical efficiency following the privatization of 39 Italian medium-sized firms operating in competitive sectors. Using Data Envelopment Analysis over a period of 10 years we highlight that, apart from acquisitions by foreign groups, there have not been significant changes in the levels of total efficiency. The only statistically significant change concerns the strong recovery in labour productivity that showed to be continuous even during the period undergoing public control. The results, in contrast with the main theoretical predictions, shift attention to the Italian financial market. A weak incentive system and the low competition in the access to the market for corporate control seem to be the main explanatory variables.

Suggested Citation

  • Giovanni Fraquelli & Fabrizio Erbetta, 1999. "Privatization in Italy: an analysis of factors productivity and technical efficiency," CERIS Working Paper 199905, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:199905
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    Cited by:

    1. Luigi Benfratello, 1999. "Beyond Profitability: Effects Of Acquisitions On Technical Efficiency And Productivity In The Italian Pasta Industry," CERIS Working Paper 199914, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    2. Luigi Benfratello, 1999. "Determinants And Effects Of Mergers And Acquisitions: An Analysis Based On The Notifications To Antitrust Authorities," CERIS Working Paper 199915, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.

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    More about this item

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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