Abstract
Reports that transfer of ownership from government to private hands is touted as the only way to eliminate inefficiencies in the public sector. Argues that the alternative approach - increasing competitive intensity through decontrol of restricted industries without changing ownership to private investors - is likely to provide similar efficiency gains. Examines this hypothesis empirically in the context of state-owned manufacturing enterprises in India that face effective competition from private sector firms. Shows, from analysis of variance of efficiency indicators of a longitudinal sample of 108 firms over the period 1988-1992, that increasing levels of competition trigger corresponding increases in the overall level of technical efficiency of state-owned enterprises that face competitive conditions. Provides a persuasive case for introducing competitive markets as an alternative to complete privatization, especially in monopolisitc settings.
Original language | English (US) |
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Pages (from-to) | 4-17 |
Number of pages | 14 |
Journal | International Journal of Public Sector Management |
Volume | 9 |
Issue number | 3 |
DOIs | |
State | Published - Jan 1 1996 |
Externally published | Yes |
Keywords
- Competitive strategy
- Efficiency
- India
- Manufacturing industry
- Ownership
- Private sector
ASJC Scopus subject areas
- Geography, Planning and Development
- Public Administration
- Political Science and International Relations
- Management, Monitoring, Policy and Law