Productive Efficiency and Welfare Gains from Privatization in Malaysia

Journal of Economic Cooperation and Development, 36, 1 (2015), 133-164

31 Pages Posted: 1 Nov 2018

See all articles by Taufiq Hassan

Taufiq Hassan

University Putra Malaysia - Faculty of Economics and Management

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Mohamed Ariff

Bond University; University Putra Malaysia

Shamsher Mohamad

International Centre for Education in Islamic Finance (INCEIF)

Date Written: 2015

Abstract

Literature shows that privatized firms generally gain financially, and privatization leads to production efficiency gains since performance outcomes are largely conditioned by externalities like ownership. Our approach linking privatization to welfare gain measures reveals three interesting results. First, there is a significant positive effect on welfare gains from privatization. Second, corporate ownership control appears to condition production efficiency and welfare gains. Finally, privatized firms also gain financially. Linking privatization to welfare gain measures is an important research and policy objective since governments cite ensuring welfare as a reason for controlling privatized firms after privatization

Keywords: privatization, efficiency, welfare gain, corporate ownership control, production efficiency

Suggested Citation

Hassan, Taufiq and Hassan, M. Kabir and Ariff, Mohamed and Mohamad, Shamsher, Productive Efficiency and Welfare Gains from Privatization in Malaysia (2015). Journal of Economic Cooperation and Development, 36, 1 (2015), 133-164, Available at SSRN: https://ssrn.com/abstract=3263357

Taufiq Hassan

University Putra Malaysia - Faculty of Economics and Management ( email )

Serdang, Selangor 43400
Malaysia

M. Kabir Hassan (Contact Author)

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Mohamed Ariff

Bond University ( email )

Gold Coast, QLD 4229
Australia

University Putra Malaysia ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

Shamsher Mohamad

International Centre for Education in Islamic Finance (INCEIF) ( email )

Kuala Lumpur
Malaysia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
20
Abstract Views
189
PlumX Metrics