State-owned enterprises privatizations in Costa Rica: How much could it reduce fiscal deficit?




Privatizations, Budget Deficit, Public Assets


The literature review on privatizations leads to mixed and contradictory conclusions on the effect of privatizations on the economy. Therefore, the conclusions of each study must be discerned and adapted to each reality, so that its implementation in practice does not have negative effects on society. Precisely in the case of Costa Rica, some have presented the idea that the sale of state-owned assets solves a large part -and some the solution- of the country’s debt, which is not true, because the impact of sales is infinitesimal and it seems that those who propose it as the "cure-all remedy", either did not make the particular calculations or are carried away by ideological approaches or simply, by a mimic effect.

Author Biography

Julio Espinoza Rodríguez, Universidad Nacional, Costa Rica

Máster en Economía del Desarrollo, Escuela de Economía


Barnett, S. A. (2000). Evidence on the fiscal and macroeconomic impact of privatization. IMF working paper.

Buchanan, J. M. (1975). The Limits of Liberty: Between Anarchy and Leviathan. The University of Chicago Press.

Buchanan, J. M., & Tullock, G. (1958). The Calculus of Consent: Logical Foundations of Constitutional Democracy. Liberty Fund.

Capitán, A. L. H. (2003). Costa Rica en evolución. Política económica, desarrollo y cambio estructural del sistema socioeconómico costarricense (1980-2002). (2003). Editorial de la Universidad de Costa Rica y Servicio de Publicaciones de la Universidad de Huelva.

Chong, A., & Silanes, F. L. de. (2005). Privatization in Latin America: Myths and Reality. World Bank Publications.

Coase, R. H. (1959). The Federal Communications Commission. The Journal of Law & Economics, 2, 1-40.

Cook, P., & Uchida, Y. (2003). Privatisation and economic growth in developing countries. The Journal of Development Studies, 39(6), 121-154.

Cuadrado-Ballesteros, B., & Peña-Miguel, N. (2018). The socioeconomic consequences of privatization: An empirical analysis for Europe. Social Indicators Research, 139(1), 163-183.

Davis, J., Ossowski, R., Richardson, T., Barnett, S., (2000). Fiscal and Macroeconomic Impact of Privatization. IMF Occasional Paper 194.

DeWenter, K. L., & Malatesta, P. H. (2001). State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity. American Economic Review, 91(1), 320-334.

D’souza, J., & Megginson, W. L. (1999). The Financial and Operating Performance of Privatized Firms during the 1990s. The Journal of Finance, 54(4), 1397-1438.

Galal, A., Jones, L., Tandon, P., & Vogelsang, I. (1994). Welfare consequences of selling public enterprises. The World Bank.

Henisz, W. J., Zelner, B. A., & Guillen, M. F. (2004). INTERNATIONAL COERCION, EMULATION, AND POLICY DIFFUSION: MARKET-ORIENTED INFRASTRUCTURE REFORMS, 1977-1999. Academy of Management Proceedings, 2004(1), N1-N6.

Katsoulakos, yLikoyanni, E. (2002), Fiscal and Other Macroeconomic Effects of Privatization, Nota di Lavoro, No. 113.2002, Fondazione Eni Enrico Mattei (FEEM), Milano.

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1999). The quality of government. The Journal of Law, Economics, and Organization, 15(1), 222-279.

Lizano Fait, E. (1999). Ajuste y crecimiento en la economía de Costa Rica: 1982-1994 (1. ed). Academia de Centroamérica.

Megginson, W. L., Nash, R. C., & Van Randenborgh, M. (1994). The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis. The Journal of Finance, 49(2), 403-452.

Meseguer, C. (2004). La difusión de las privatizaciones en la OCDE y en América Latina: ¿un proceso de aprendizaje? Revista Española de Ciencia Política, 111-138.

Moshiri, S., & Abdou, A. (2010). Privatization, Regulation, and Economic Growth in Developing Countries: An Empirical Analysis (SSRN Scholarly Paper ID 1695274). Social Science Research Network.

Muñoz, I., & Vargas, C. A. (1992). Le producción de fertilizantes en Costa Rica y el modelo estatal costarricense: El caso FERTICA. Anuario de Estudios Centroamericanos, 61-83.

OCDE. (2015). Board practices and financing for Latin American State-Owned Enterprises. Organisation for Economic Cooperation and Development.

Plane, P. (1997). Privatization and economic growth: An empirical investigation from a sample of developing market economies. Applied Economics, 29(2), 161-178.

Roland, G. (2000). Transition and Economics. Politics, Markets, and Firms. The MIT Press.

Sunderland, Alexander H. 2011. Fiscal Impact of Privatization in Developing Countries" (2011). CMC Senior Theses. Paper 109.

Tittenbrun, J. (1996). Private versus public enterprise: In search of the economic rationale for privatisation. Janus.



How to Cite

State-owned enterprises privatizations in Costa Rica: How much could it reduce fiscal deficit?. (2021). Economía Y Sociedad, 26(60), 1-29.



Articles (Arbitrated section)

How to Cite

State-owned enterprises privatizations in Costa Rica: How much could it reduce fiscal deficit?. (2021). Economía Y Sociedad, 26(60), 1-29.

Comentarios (ver términos de uso)

Similar Articles

1-10 of 11

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 9 10 > >>