Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/173399 
Authors: 
Year of Publication: 
2017
Series/Report no.: 
DIW Discussion Papers No. 1713
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
In advanced economies, state-owned enterprises play an important role in sectors of general interest such as energy and water supply. The conditions under which they operate have changed fundamentally since 1998, with new strategies required for firms to preserve market shares in the face of liberalisation and technological innovation. This paper investigates the productivity effect of three strategies in new public management: corporatisation, outsourcing, and partial privatisation. Firm-level productivity is estimated from production data using a control function approach. As most of the firms are typically multiproduct firms, we suggest a method for modelling differences in the product mix and to account for heterogeneous production environments. Using a newly constructed and unique dataset from the German Federal Statistical Office, we find that outsourcing and corporatisation positively impact productivity, while partial privatisation does not increase productivity.
Subjects: 
State Ownership
Productivity
Firm Organisation
Structural Production Function
JEL: 
L32
D24
L24
L97
Document Type: 
Working Paper

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