Social Impact of Privatization

The book assesses the Social impact of privatization. It uses employment and output in Pakistan's edible oil and cement sectors as a case study. Research is both a policy and empirical analysis. Extensive review of literature covers developed, less developed and transitional economies, sets the stage for policy analysis, and helps in assessing the policy implications of adopting privatization. At the empirical level, the study uses a firm-level data set compiled separately for managers' and workers' employment and wages, as well as for output. By adopting a simple to complex strategy, first general trends from the data are presented which are later tested with the help of static and dynamic panel regression analysis.The results show a negative and statistically significant impact of privatization for total and workers' employment. It is positive, though statistically insignificant, for managers' employment and output. The impact of macroeconomic policies, reflected through the structural adjustment programme dummy variable, is negative for all regressions except for managers' employment.