Globalization, Privatization and Free Market Economy

By C. P. Rao | Go to book overview

CHAPTER 9
An Empirical Comparison of Commercial Profitability in the Private and Public Sector in India: Identifying the Effect of Competitive Intensity

KANNAN RAMASWAMY AND WILLIAM RENFORTH

This chapter compares the relative profitability of state-owned enterprises and privately owned firms in the Indian manufacturing sector. Using a matched pair design, the results show that private sector firms clearly out- performed their public sector counterparts. However, these profitability differences seem to be accentuated when competitive intensity is high and are minimized at lower levels of competition. This suggests that competitive intensity moderates the relationship between ownership status and commercial profitability. Consequently, industry competitive market structure must be considered when evaluating the effects of ownership form on performance.


INTRODUCTION

Sweeping economic reforms are transforming the economic landscape of developing countries worldwide. Countries such as India, Pakistan, Bangladesh, Nigeria, Sudan, Chile, Argentina and Venezuela are implementing a variety of initiatives to hasten the transformation of historically regulated economies into free market systems. Privatization is one such initiative that is envisioned as a viable means of revitalizing poor performance economies. This trend builds in part on the experiences of developed countries such as the United Kingdom, Canada and Sweden that privatized substantial segments of their state-controlled industries. It also stems from general disillusion with the politicized management of state-owned enterprises (SOEs), the anemic financial performance of the public sector and significant changes in external political and economic conditions ( Baer and Birch, 1992; Bhaya, 1990; Shirley, 1989; Vickers and Yarrow, 1988). Confronted with the generally disappointing performance of SOEs and the dire

-110-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Globalization, Privatization and Free Market Economy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 286

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.