Privatization in vertically related markets: insights from a general equilibrium approach

• Dianshuang Wang ^[1] ; Xiaochun Li ^[1]
  1. [1] Nanjing University

     Nanjing University

     China

     
• Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 234, 2020, págs. 3-21
• Idioma: inglés
• DOI: 10.7866/HPE-RPE.20.3.1
• Títulos paralelos:
  • Privatización en mercados relacionados verticalmente: perspectivas de un enfoque de equilibrio general
• Enlaces
  • Texto completo
• Resumen
  • español

    Se construye un modelo de equilibrio general de tres sectores para investigar el efecto de la privatización de una empresa estatal en una economía en vías de desarrollo. La empresa pública que se enfrenta a la privatización posee una posición monopolística en el mercado de proveedores y ofrece un consumo intermedio esencial para el sector industrial. Después de la privatización la empresa pública mejora su eficiencia. Los resultados indican que el grado de mejora en la eficiencia es determinante para cuantificar los efectos de la privatización y proporcionan una nueva perspectiva para el análisis de esta cuestión. Si la mejora de eficiencia es elevada la privatización disminuirá el precio de los consumos intermedios y aumentará la producción. Si la mejora de eficiencia es moderada la privatización aumentará la producción industrial y agrícola, así como mejorará el bienestar social.

  • English

    A three-sector general equilibrium model is built to investigate how deepening privatization of an upstream state-owned enterprise (SOE) influences the whole economy in developing economy. The SOE, facing privatization, owns a monopolistic position in upstream market and offers an essential intermediate input for downstream manufacturing sector. After the privatization, the SOE improves its efficiency. We conclude the efficiency-enhancing effect is crucial for determining the impacts of privatization and provide a new perspective for analyzing this issue. Deepening privatization lowers (raises) price of the intermediate input and increases its output if the efficiency-enhancing effect is relatively large (small). When the effect is moderate, an increase in the privatization level raises the output of manufacturing and agricultural and improves social welfare.

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