Potential Effects of Privatization on Economic Growth: The Nigerian Case

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Periodical article

Title:	Potential Effects of Privatization on Economic Growth: The Nigerian Case
Author:	Taiwo, I.O.
Year:	1989
Periodical:	Eastern Africa Economic Review
Volume:	5
Issue:	1
Period:	June
Pages:	62-73
Language:	English
Notes:	biblio. refs., ills.
Geographic terms:	Nigeria West Africa
Subjects:	privatization Economics and Trade Economics, Commerce economic development Private investment public enterprises
Abstract:	This paper estimates the impact of a very popular, if not the most popular, form of privatization, namely divestiture through the sale of public assets, on economic growth. It constructs a model using the neoclassical growth model as a basis, and estimates this model using data from Nigeria. The result shows that the GDP depends on private and public investment expenditures, the structure of capital stock by sector, and the GDP lagged one period. Moreover, private investment has a greater influence on the GDP than public investment, and the ratio of public capital stock to private capital stock has a negative influence. One can then infer that privatization has the potential of enhancing growth. However, certain measures such as regulatory reforms should be taken so as to realize this benefit. Bibliogr.