Is Privatization Significant for Economic Growth? Empirical Findings from India
Posted: 25 Mar 2010 Last revised: 12 Apr 2016
Date Written: March 19, 2010
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: Suggested Citation