The Inferior Performance of State Owned Enterprises: Is it due to Ownership of Market Structure?
Original version
Working Paper, NUPI nr 663. NUPI, 2004Abstract
We analyze differences in performance between private companies (PCs)
and state owned enterprises (SOEs), with an emphasis on the effects of market structure.
We use a panel covering all registered companies during the 1990s in Norway, a country
where SOEs play an important role in regular markets. Return on assets as well as costs
measures are used as measures of performance in models that investigate markets where
SOEs and PCs actually compete with each other. Although market shares and concentration
affect performance, ownership identity still explains most of the inferior performance
among SOEs.
Description
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