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  • Essay on the productivity of public enterprises

  • Author :
    Jiyoung Kim
  • Publication Date :
    2011-11-01
  • Summary
    This paper examines the determinants of the productivity of public enterprises. Especially it focuses on the effect of public ownership on the total factor productivity and labor productivity. The empirical analysis utilizes the panel data which contains the individual firm data for both public and private enterprises.

    The results show that the total factor productivity of public enterprises is not statistically different with that of private enterprises in most industries. Also I could find the same results on the labor productivities. In addition, I investigate the effect of performance evaluation system on the labor productivity of public enterprises. Performance evaluation system turns out to have signifiant effects on the labor productivity of public enterprises, but its effects vary across the size of public enterprises. It increases the labor productivity for the public enterprises with large size of capital and labor costs, while it has negative effect on the labor productivity for the public enterprises with small size of capital and labor costs. Besides the empirical analysis, this paper provides a brief exploration on the difference between the productivity index of performance evaluation system and the productivity measure.

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