Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency
The authors compare the performance of public and private sector manufacturing firms in Indonesia for 1981-95. They analyze whether public sector inefficiency is due primarily to agency-type problems (ownership) or to the business environment in wh...
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| Format: | Working Paper |
| Language: | English en_US |
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World
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| Online Access: | http://documents.worldbank.org/curated/en/2000/01/438963/ownership-versus-environment-disentangling-sources-public-sector-inefficiency http://hdl.handle.net/10986/22267 |
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okr-10986-222672021-04-23T14:04:07Z Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency Bartel, Ann P. Harrison, Ann E. ASSETS AUTONOMY BANK LENDING BANK LOANS BANKING SYSTEM BARRIERS TO ENTRY DEPRECIATION DUOPOLY ECONOMIC GROWTH ECONOMIC PERFORMANCE ELASTICITY ELASTICITY OF DEMAND EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT FINANCING SOURCES GOVERNMENT SUBSIDIES GROWTH RATE IMPERFECT COMPETITION IMPORTS INEFFICIENCY INPUT USE INVENTORY LABOR COSTS LABOR INPUTS LABOR PRODUCTIVITY MARGINAL PRODUCT MARKET POWER MONOPOLIES NATURAL MONOPOLY NET EXPORTS OPERATING INCOME PRINCIPAL AGENT PROBLEM PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PUBLIC ENTERPRISES PUBLIC OWNERSHIP PUBLIC SECTOR PUBLIC SECTOR EFFICIENCY PUBLIC SECTOR PERFORMANCE PUBLIC SECTOR PRODUCTIVITY QUOTAS STATE BANKS STATE ENTERPRISES STOCK PRICES TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT UTILITIES UTILITY FUNCTION The authors compare the performance of public and private sector manufacturing firms in Indonesia for 1981-95. They analyze whether public sector inefficiency is due primarily to agency-type problems (ownership) or to the business environment in which public enterprises operate, as measured by soft budget constraints or barriers to competition. They nest the two alternatives in a production function framework. The results, obtained from fixed-effects specifications, provide support for both models. The business environment matters. Only public enterprises that received loans from state banks or those shielded from import competition performed worse than private enterprises. Ownership matters. For a given level of import competition or soft loans, public enterprises perform worse than their counterparts in the private sector. Eliminating soft loans to Indonesia's public enterprises would raise total factor productivity by 6 percentage points; the same result could be achieved by increasing import penetration by 15 percentage points. The authors show that these findings are not due to selection effects for either privatization or the receipt of soft loans. 2015-07-21T14:59:19Z 2015-07-21T14:59:19Z 2000-01 Working Paper http://documents.worldbank.org/curated/en/2000/01/438963/ownership-versus-environment-disentangling-sources-public-sector-inefficiency http://hdl.handle.net/10986/22267 English en_US Policy Research Working Paper;No. 2272 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia Indonesia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ASSETS AUTONOMY BANK LENDING BANK LOANS BANKING SYSTEM BARRIERS TO ENTRY DEPRECIATION DUOPOLY ECONOMIC GROWTH ECONOMIC PERFORMANCE ELASTICITY ELASTICITY OF DEMAND EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT FINANCING SOURCES GOVERNMENT SUBSIDIES GROWTH RATE IMPERFECT COMPETITION IMPORTS INEFFICIENCY INPUT USE INVENTORY LABOR COSTS LABOR INPUTS LABOR PRODUCTIVITY MARGINAL PRODUCT MARKET POWER MONOPOLIES NATURAL MONOPOLY NET EXPORTS OPERATING INCOME PRINCIPAL AGENT PROBLEM PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PUBLIC ENTERPRISES PUBLIC OWNERSHIP PUBLIC SECTOR PUBLIC SECTOR EFFICIENCY PUBLIC SECTOR PERFORMANCE PUBLIC SECTOR PRODUCTIVITY QUOTAS STATE BANKS STATE ENTERPRISES STOCK PRICES TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT UTILITIES UTILITY FUNCTION |
| spellingShingle |
ASSETS AUTONOMY BANK LENDING BANK LOANS BANKING SYSTEM BARRIERS TO ENTRY DEPRECIATION DUOPOLY ECONOMIC GROWTH ECONOMIC PERFORMANCE ELASTICITY ELASTICITY OF DEMAND EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT FINANCING SOURCES GOVERNMENT SUBSIDIES GROWTH RATE IMPERFECT COMPETITION IMPORTS INEFFICIENCY INPUT USE INVENTORY LABOR COSTS LABOR INPUTS LABOR PRODUCTIVITY MARGINAL PRODUCT MARKET POWER MONOPOLIES NATURAL MONOPOLY NET EXPORTS OPERATING INCOME PRINCIPAL AGENT PROBLEM PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PUBLIC ENTERPRISES PUBLIC OWNERSHIP PUBLIC SECTOR PUBLIC SECTOR EFFICIENCY PUBLIC SECTOR PERFORMANCE PUBLIC SECTOR PRODUCTIVITY QUOTAS STATE BANKS STATE ENTERPRISES STOCK PRICES TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT UTILITIES UTILITY FUNCTION Bartel, Ann P. Harrison, Ann E. Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency |
| geographic_facet |
East Asia and Pacific East Asia Indonesia |
| relation |
Policy Research Working Paper;No. 2272 |
| description |
The authors compare the performance of
public and private sector manufacturing firms in Indonesia
for 1981-95. They analyze whether public sector inefficiency
is due primarily to agency-type problems (ownership) or to
the business environment in which public enterprises
operate, as measured by soft budget constraints or barriers
to competition. They nest the two alternatives in a
production function framework. The results, obtained from
fixed-effects specifications, provide support for both
models. The business environment matters. Only public
enterprises that received loans from state banks or those
shielded from import competition performed worse than
private enterprises. Ownership matters. For a given level of
import competition or soft loans, public enterprises perform
worse than their counterparts in the private sector.
Eliminating soft loans to Indonesia's public enterprises
would raise total factor productivity by 6 percentage
points; the same result could be achieved by increasing
import penetration by 15 percentage points. The authors show
that these findings are not due to selection effects for
either privatization or the receipt of soft loans. |
| format |
Working Paper |
| author |
Bartel, Ann P. Harrison, Ann E. |
| author_facet |
Bartel, Ann P. Harrison, Ann E. |
| author_sort |
Bartel, Ann P. |
| title |
Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency |
| title_short |
Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency |
| title_full |
Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency |
| title_fullStr |
Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency |
| title_full_unstemmed |
Ownership versus Environment : Disentangling the Sources of Public Sector Inefficiency |
| title_sort |
ownership versus environment : disentangling the sources of public sector inefficiency |
| publisher |
World |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2000/01/438963/ownership-versus-environment-disentangling-sources-public-sector-inefficiency http://hdl.handle.net/10986/22267 |
| _version_ |
1764450581981691904 |