Abstract
State‐owned enterprises (SOEs), in general, have not been successful. Their indifferent performance has been at the center of the debate about the role of the state in the economy. To economists, the performance of SOEs is evidence of what is wrong with state intervention. And in recent years privatization has increasingly been regarded as the only way of improving the performance of SOEs. Yet, while unsuccessful SOEs abound, a few high‐performing SOEs such as POSCO (South Korea), Airbus Industrie (France), EMBRAER (Brazil), and MUL (India) can also be found.
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