“…That paper has been extended to analyze factors that affect partial privatization of public firms. Among other factors, the literature has considered partially foreign-owned private firms (Han and Ogawa, 2008), foreign investment in partially privatized firms (Lin and Matsumura, 2012), cross-ownership of firms (Jain and Pal, 2012;Chai and Karasawa-Ohtashiro, 2015), trade policies (Chao and Yu, 2006;Long and St€ ahler, 2009), product differentiation (Fujiwara, 2007;Lu and Poddar, 2007), free entry (Matsumura and Kanda, 2005;Wang and Chen, 2010), endogenous timing of decisions (B arcena-Ruiz and Garz on, 2010), environmental problems (Kato, 2006;Ohori, 2006) and merger problems (B arcena-Ruiz and Garz on, 2003;M endez-Naya, 2008). However, this literature has not considered partial privatization of state corporations that produce more than one type of goods at more than one production plant.…”