PublicationWorking Papers

Vertical and Horizontal Separation in the European Railway Sector

Effects on Productivity

Social Sciences > Economics

The processes of vertical and horizontal separation within the railway sector are relatively recent in many European countries, and, as a result, little analytical research has been carried out on their impact. The purpose of this working paper is to analyze the effects of these organizational reforms on efficiency, productivity and technical change in 16 national railway systems in Europe over the period 1985-2004.

Results indicate that in general, the reforms appear to have been beneficial, although evidence of significantly higher efficiency levels and greater productivity growth is only found in countries that have completed both vertical and horizontal separation processes.