Impacts of Privatization on Profitability and Labor Productivity of Privatized Companies in Iran

Document Type : Research Paper

Authors

1 Assistant Professor of Economics, Institute for Humanities and Cultural Studies

2 M. A. in Economics

Abstract

Privatization aims to improve productivity and profitability of firms in different sectors of the economy. However, studies show that the impacts of privatization on productivity is mixed. The main objective of this study is examine the effects of privatization on the financial and economic performance of privatized companies in Iran. We consider two variables of labor productivity and profitability in privatized companies as the performance indicators. Findings from a Panel data model including 22 selected privatized companies during 2000 to 2010 show a positive and significant impact of privatization on labor productivity and profitability in privatized companies. Also, using the Wilcoxon signed-rank test we find a significant difference before and after privatization in the mentioned variables.
JEL Classification: C33, D24, L33

Keywords


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