PRIVATIZATION OF PUBLIC SECTOR ENTERPRISES IN PAKISTAN: PROSPECTS FOR REDUCING REGIONAL IMBALANCES*

Robert E. Looney and Peter C. Frederiksen

Review of Urban & Regional Development Studies, 1995, vol. 7, issue 2, 143-152

Abstract: This paper tests the somewhat counterintuitive hypothesis that public firms are more efficient than their private sector counterparts. A factor analysis (9 industrial groups/34 industries) indicated that for all Pakistani provinces, public enterprises contributed relatively more value added which supports the findings of Naqvi and Kamal. The paper also concludes that a policy to reduce Pakistan's regional income disparities by privatizing public enterprises would likely be ineffective.

Date: 1995
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