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Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico

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dc.contributor.author Trujillo, Lourdes
dc.contributor.author Gonzalez, Marianela
dc.contributor.author Estache, Antonio
dc.date.accessioned 2014-08-21T18:48:06Z
dc.date.available 2014-08-21T18:48:06Z
dc.date.issued 2001-07
dc.identifier.uri http://hdl.handle.net/10986/19578
dc.description.abstract The authors show how relatively standard methodologies can help to measure the efficiency gains from reforming the organization of port infrastructure, how those measures can be used to promote competition between ports, and how competition can be built into an incentive-driven regulatory regime. As illustration, they use a case study of port reform in mexico in 1993, the first efficiency analysis of port restructuring in a developing country. Their analysis, which covers 1996-99 and relies on a stochastic production frontier, shows that overall, Mexico has achieved annual efficiency gains of 6-8 percent in the use of port infrastructure since assigning its management to independent, decentralized operators. Changes in relative performance ratings are revealing. They identify consistent sets of leaders and laggards, including some that would not have been identified by partial productivity indicators commonly used in the sector. The authors' main conclusions: 1) Reforms have significantly improved average port performance. 2) The analytically sound performance rankings allowed by the port-specific efficiency measures can help to promote yardstick competition in the sector. These rankings are superior to those that would emerge from use of partial productivity indicators. They account for the joint effects of all inputs on outputs--which is crucial, because it avoids the risk of inconsistent rankings based on different partial indicators, arbitrarily chosen. Developing the database method to measure efficiency in countries with no strong tradition of database development is an enormous task--especially in transport sectors, where the tradition of generating databases useful to policymakers is in its infancy. The most immediate effect of this exercise was to reveal the poverty of the database in the Mexican port sector and the need for regulators to invest in its development. en
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 2637
dc.rights CC BY 3.0 IGO
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject COST FUNCTIONS
dc.subject FUNCTIONAL FORMS
dc.subject BERTH
dc.subject CARGO
dc.subject INEFFICIENCY
dc.subject CONTAINERIZATION
dc.subject LOADING
dc.subject CONTAINER TERMINALS
dc.subject EXPENDITURES
dc.subject FISHING
dc.subject INTERNATIONAL TRADE
dc.subject DOCKS
dc.subject ALLOCATIVE EFFICIENCY
dc.subject INTERMEDIATE INPUTS
dc.subject ECONOMIES OF SCALE
dc.subject LOGISTICS CHAIN
dc.subject CONTAINER BERTHS
dc.subject INTERNATIONAL STANDARDS
dc.subject BARRIERS TO ENTRY
dc.subject LABOR PRODUCTIVITY
dc.subject ENERGY CONSUMPTION
dc.subject LABOR INPUTS
dc.subject CONTAINER TRAFFIC
dc.subject EMPLOYMENT
dc.subject BERTHS
dc.subject CARGOES
dc.subject COST MINIMIZATION
dc.subject ECONOMIC EFFICIENCY
dc.subject HANDLING
dc.subject CONSTANT RETURNS TO SCALE
dc.subject COMPETITIVENESS
dc.subject DECENTRALIZATION
dc.subject FREIGHT
dc.title Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico en


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