Privatizations and efficiency. Evidences from the Italian iron and steel industry, 1979–2016

Grounding on a new dataset gathering end-of-year financial statements of Italian steelmakers from 1979 to 2016, this article aims at assessing the effects of privatizations on the steelmaking industry, both in terms of changes in the industrial structure and of firms’ performance. It tries to verify whether privatizations fostered allocative efficiency and increased companies’ productive efficiency and innovative capabilities, and contributes to the debate on the alleged positive effects of privatizations on economic growth. In this respect, the article suggests some interesting insights both on the relationship between ownership and performance and on the outcomes of the Italian, as well as European, privatization processes of the fourth quarter of the 20th century.