Is Privatization Significant for Economic Growth? Empirical Findings from India

Posted: 25 Mar 2010 Last revised: 12 Apr 2016

See all articles by Jesiah Selvam

Jesiah Selvam

affiliation not provided to SSRN

Date Written: March 19, 2010

Abstract

The paper looks at the India’s privatization experiment which began in the early 1990s. The data used for this study covers a period of over seventeen years, 1991/92-2006/07. A regression model is constructed using the neoclassical growth model with the objective to assess as to whether or not the magnitude of privatization is significant on economic growth. Agriculture, Industry and Capital - the most important variables for economic growth - are chosen for the study. The empirical evidences aided by OLS reveal that privatization does not have any impact on the overall growth of the economy despite a robust relationship with Industry. The paper concludes that the policy and modus operandi of the programme need to be niche-tailored for agriculture, industry and capital.

Keywords: Privatization, economic growth, agriculture, industry, capital

JEL Classification: L33, E22, N15

Suggested Citation

Jesiah, Selvam, Is Privatization Significant for Economic Growth? Empirical Findings from India (March 19, 2010). Available at SSRN: https://ssrn.com/abstract=1574776

Selvam Jesiah (Contact Author)

affiliation not provided to SSRN

Register to save articles to
your library

Register

Paper statistics

Abstract Views
402
PlumX Metrics