 Has Privatization Promoted Efficiency in Ethiopia?: A Panel Data Analysis on Large and Medium Scale Manufacturing FirmsMisganaw Badasa ()
Economic Research Guardian, 2019, vol. 9, issue 2, 55-74 Abstract: Privatization, as a program, has been implemented in Ethiopia since EPRDF took power, with the motive, among other things, to increase efficiency of firms. This study aimed at investigating whether the program has promoted efficiency of privatized large and medium scale manufacturing firms. A panel data ranging from 1995 to 2009 was collected from Central Statistical Agency for 71 privatized and 333 publicly remained firm. The results revealed the overall insignificant effect of privatization on the efficiency of large and medium scale manufacturing firms. Based on the findings of the study, one can forward the following recommendations. If the privatization program is being implemented in the motive of increasing efficiency of firms as a major and immediate objective, it is better to stop the process, since it has nothing to do with improvement in efficiency. On the other hand, if the motives other than increasing efficiency such as promoting participation of the private sector and generating reveue outweigh as causes of implementing the program, the assessment of its effect on these goals is important to provide a realistic recommendation. Keywords: Privatization; Efficiency; Panel Data; Ethiopia (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wei:journl:v:9:y:2019:i:2:p:55-74 Access Statistics for this article Economic Research Guardian is currently edited by Mihai Mutascu More articles in Economic Research Guardian from Mutascu Publishing |
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