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The Impact of Privatization Policy on Firm's Productivity: Case Study of Equity Shares in Iran

Moudi, Mohammad Amin | 2024

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 57641 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Mahmouzadeh, Amineh
  7. Abstract:
  8. Privatization is one of the most important economic reform policies of the 1980s and 1990s, and it has been widely studied. Many researchers have studied the difference between public and private companies from the perspective of productivity and performance. Due to the different implementation methods of this policy, different consequences are expected. In this research, the causal effect of government ownership on the productivity of companies is investigated. In this regard, using the difference-in-difference method, we investigate the Equity Share policy and measure its effect on the level of productivity of companies and their growth. The results show that the implementation of the equity share policy has a positive and significant effect on the productivity level of the total production factors of the experimental group companies, and also the capital productivity of these companies increases positively and significantly compared to the control group after the implementation of the policy, but the labor productivity of these companies does'n has a significant change. in the short term, the labor productivity of the companies has also grown positively and significantly. Additionally, the results suggest that the extent of company privatization has a positive and significant effect on the level of total factor productivity and the capital productivity. Examining the possible mechanisms that led to these changes shows that this increase in productivity is not due to a decrease in the company's costs, but results from the growth of the companies' incomes. Also, the ratio of investment on the purchase of fixed assets of the experimental group companies has not changed significantly after the implementation of the policy. Additionally, the composition of loans received by the experimental group shifted towards more short-term loans, confirming previous findings in this area
  9. Keywords:
  10. Total Factor Productivity (TFP) ; Privatization ; Equity Shares ; Government Ownership ; Economic Reforms

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