workingPaper
Privatization in Colombia : a plant performance analysis
Fecha
2002Registro en:
0124-4396
Autor
Pombo, Carlos
Ramírez Gómez, Manuel
Institución
Resumen
This paper describes the real sector privatization program in Colombia during the nineties and puts that policy in the context of general market deregulation and promotion of private investment in the provision of public infrastructure and domiciliary public services strategy. The paper evaluates the privatization program in manufacturing and power sector as case studies. It follows the ex-post measuring and econometric analysis of a set of operative and restructuring performance indicators for the privatized firms. For manufacturing, the study sample consists of 30 large manufacturing firms where the Instituto de Fomento Industrial was the founding partner. The main findings suggest that those firms followed a pro-cyclical behavior relative to their private competitors and undertook tight plant operative restructuring. For the power sector the paper studies the impact of the Regulatory Reform on market entry, ownership structure, market competition, and productive efficiency. The measurement of productive efficiency follows a Data Envelope Analysis technique based on a sample of 33 plants that count for 85% of the installed capacity in thermal generation. The sample units are plants that were active before the reform and the entrant ones that started commercial operations after the reform. The results suggest that efficiency scores in thermal generation have improved after the reform and that regulatory policy had a positive effect on productive efficiency.