The Impact of Privatisation on the Performance of Firms in Egypt

Abstract

The objective of this paper is to evaluate the Egyptian privatisation programme in terms of firms' performance. By relaying on 15 years of data, which cover the period 1991/1992 till 2004/2005; this paper empirically investigates whether the operating efficiency of privatised firms improves following privatisation through comparing pre- and post-privatisation performance in terms of operating efficiency indicators, and level of employment. To reach the research objective, several statistical techniques, such as parametric t-test, the non-parametric and Wilcoxon signed-rank test are performed. The results from this analysis indicate clearly that there are significant increases in operating efficiency indicators as well as significant declines in the level of employment in the firms under investigation.

Keywords: Privatisation, Performance Measures