Economics Research Institute Study Paper
Utah State University Department of Economics
This paper measures the firm-specific technical efficiency for a sample of 44 publicly owned and privately owned petroleum companies in the international oil industry. The empirical investigation is carried out by using the stochastic frontier production function approach. The results indicate the private decision-making units in the oil industry outperformed their publicly owned counterparts in terms of technical efficiency. The implication is privatization can improve the performance of the transformed public enterprises. /
Al-Sumadi, Tayseer and Biswas, Basudeb, "Privatization and Technical Efficiency: An Application of Stochastic Frontier Model to the International Oil Industry" (1998). Economic Research Institute Study Papers. Paper 141.