seyed reza pournaghi; Ahmad Jafari Samimi; Farid Askari; Farzaneh Khalili
Abstract
Abstract Expanded
1- INTRODUCTION
Developments and fluctuations in economic growth will cause significant changes in the economy and its variables. Therefore, examination of the cause of fluctuations and instability in economic growth can eliminate or improve their impact. During the last 4 ...
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Abstract Expanded
1- INTRODUCTION
Developments and fluctuations in economic growth will cause significant changes in the economy and its variables. Therefore, examination of the cause of fluctuations and instability in economic growth can eliminate or improve their impact. During the last 4 decades, economic adjustment policies - which have been proposed by the international community to various countries with the aim of stablization of the economy in the short run and changing the structures of the economy in the long run - have been implemented in Iran. This study was conducted to investigate the compatibility of economic adjustment policies in Iran.
2-THEORETICAL FRAMEWORK
Economic growth of a country is the change in production of a country compared to the previous year. Therefore, a change in any of the components of a country's GDP causes a change in economic growth and, consequently, causes fluctuation or instability in it.
Oil revenues as one of the most important export revenues from natural resources, depending on the type of use (in current consumption or investment) affect economic growth or instability. On the one hand, oil wealth can accelerate the pace of development due to the level of financial development and increase national income, on the other hand, long-term economic growth will be damaged due to imbalances in different sectors of the economy.
Financial liberalization on the one hand, citing neoclassical theories and the free flow of capital from high-capital economies to low-capital economies, life cycle models and increasing private savings and attracting investment in the portfolio, increases project returns. on the other hand, some countries were affected by the implementation of financial liberalization and faced severe financial crises, followed by economic instability.
Trade liberalization due to the transfer of knowledge and technology to a country can improve economic growth. Trade also allows producers to access larger markets. Improved productivity through the use of untapped resources, more distinctive products with higher quality and lower prices, and ultimately increased production and surplus consumer welfare. Despite the positive effects of trade liberalization, this policy will destabilize economic growth in developing countries that have few products to offer to the world market.
Privatization is a fundamental structural change of ownership, which is transferred from the public sector to the private sector, and this change of ownership leads to fundamental changes in the basic incentives and motivations of owners and managers of enterprises and the goals of those enterprises. the effect of privatization on economic growth can be demonstrated through microeconomics theories, the theory of new institutional economics, the theory of public choice and the theory of representation.
In the empirical literature, the importance of the role of government is how it can provide a stable environment for economic growth. Examination of the issue of government spending (as an indicator of its size) and GDP growth, there are conflicting results, and the relationship between government spending and economic growth depends on the sources of financing government spending and government performance. Thus, if government spending is financed through borrowing, the relationship between government spending and economic growth is negative, and if government spending is financed through taxes, the relationship between government spending and economic growth is positive.
3- METHODOLOGY
In this study by using the vector auto regressive model (VAR), the relationship between economic adjustment policies on fluctuations and instability of economic growth during the period 1981 to 2019 has been investigated. the annual fluctuations of economic growth were selected by using the exponential conditional variance (EGARCH) model with intervals 1 and 2 to show the variance inequality and the effects of the three policies of privatization, trade liberalization and financial liberalization were measured. The variables of trade intensity, volume of assets transferred to the private sector and the amount of foreign assets of the banking system are considered as indicators of trade liberalization, privatization and financial liberalization policies, respectively.
4- DISCUSSION
Out results showed that the variables of financial liberalization have the lowest (0.6%) and the variables of commercial liberalization have the highest (21%) share in the volatile changes of economic growth. Also, financial liberalization only increases in the short run and does not affect instability in the long run. The trade liberalization variable will reduce economic instability, while the surge in oil revenues will increase instability in economic growth. The government expenditure variable in this study has a dual behavior, so that in the short run will reduce instability and in the long run will increase the instability of economic growth. Privatization policies have the most short-term (0.0173) and long-term (0.0052) effects on economic growth instability and will increase economic growth instability.
5- CONCLUSION & SUGGESTIONS
Examination of the results of the instability response to various variables shows that not only economic adjustment policies incompatible in terms of their impact on growth fluctuations, but also not compatible with government policies. In the short and long term, privatization and financial liberalization policies will increase and trade liberalization policies will reduce instability. While the government's fiscal expansion policy (increase spending) will reduce instability in the short run and increase economic growth instability in the long run. Thus, the simultaneous implementation of trade liberalization policies and increased government spending (financial expansion) will reduce instability in the short and long term. Because both policies are compatible with each other and their results in the short-term and long-term will reduce the instability of economic growth. Therefore, it is recommended to adopt trade protection policies (both in terms of imports and exports) because these policies will not only improve the trade balance and increase the level of trade liberalization, but also the instability of economic growth. and will also reduce production.
Hossein Takroosta; Alireza Khorakian
Abstract
Privatization is an important process in organizational change. If properly implemented, it will lead to good economic growth; for this reason, it is known as the economic engine (Pheko, 2013). If not implemented properly, or if implemented neglectfully, it will lead to undesirable results. Therefore, ...
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Privatization is an important process in organizational change. If properly implemented, it will lead to good economic growth; for this reason, it is known as the economic engine (Pheko, 2013). If not implemented properly, or if implemented neglectfully, it will lead to undesirable results. Therefore, privatization is an important issue in the economic development of countries and ignoring it causes irreparable damages to the body of society (Zahedi, 2012) & Mirkamali). On the other hand, the main causes of privatization failure in financial institutions are lack of attention to the prerequisites of the privatization process (Al-Omran& Al-Omran, 2011), dimensions of privatization (Waigama, 2008), and types of privatizations (Clifford, 1993).
Theoretical Framework
Privatization was raised for the first time in the theories of classical economists (Waigama, 2008). It refers to the change of control or ownership from the public system to the private system (Al-Omran, et al., 2011; Mirzade, Shahbazi, & Javahery, 2009).
Privatization is the most important component of the world economy in the 21st century (Sawagvudcharee, 2012). Therefore, prescribing privatization programs for developing countries is the only way to treat their sick governmental economy (Mirzade, et al, 2008; Lashkari, et al., 2009).
Privatization goals include: transforming the economy to a dynamic, competitive and developmental economy and reducing the government tenure (Ram, 2012); increasing international competition (Clifford, 1993), deregulating and improving productivity (Abdel Shahid, 2002) , reducing the scope of direct jurisdiction of government in the economy (Waigama, 2008; Clifford, 1993), increasing the capacity and entrepreneurial skills and the economic enterprises efficiency (Pheko, 2013; Clifford, 1993), capital market the development (Waigama, 2008; Clifford, 1993) and gaining access to new technology and foreign markets (Clifford, 1993).
Privatization occurs in five states: privatization of responsibilities, i.e., removing the monitoring role of government from a specific part; privatization of ownership, i.e., transferring the majority or minority shares to the private sector; privatization of operations, i.e., cooperation between government and private companies (Mirzade, et al, 2009); and -tickle downs to the poorest, i.e., the development of public infrastructure, helping public companies through investments and tenders by contractors (Pheko, 2013).
In organizational change, noteworthy models are : the force field analysis (Kurt Lewin, 1951), System Analysis (Likert, 1967), the six box model (Weisbord, 1976), the adaptation analysis of organization model (Nadler & Nachmn, 1977), the 7S framework (McKenzie, 1981), TPS framework (Tichy, 1983), high-performance planning (Nelson & Brown, 1984), recognizing individual and group behavior (Harrison, 1987), and Burk-litwin model (1982). Among these models, Burk-litwin-is the most comprehensive model of organizational change (Pheko, 2013).
Research Methodology
This study is practical in terms of its nature and goal, and is descriptive in terms of data collection as well as a survey and a libarary-based one. 323 questionnaires were distributed among the staff of privatized banks and the analysis was done based on the 323 questionnaires. 7 variables were applied for hypothesis testing. To measure the dimentions of Burk-litwin model, standardized questionnaire (Zhibin, 2004) was used and the variables of return on assets ratio (ROA) and return on equity ratio (ROE) were measured for private banks of Saman, Parsian, Pasargad, Eqtesad Novin and privatized banks of Tejarat, Saderat, and Mellat.
Conclusion
The results showed that 7 dimensions of Burk-litwin model, i.e., change in leadership, culture, structure, strategy, management, policy and decsion making, and motivation were used less in privatized financial institutions. This result is consistent with works of Proskat (1978), Mills and Snow (1978), Gordon (1985), Chandler (1962), Mills at al. (1978), Trigo and Zimerman (1980), and Bagheri, et al. (2011).
Furthermore, the results of this study are in line with the results of studies by Joyce and Slocom (1984), Ouchi (1977), and Galbraith (1977) that examine the dimensions of structure, atmosphere, management practices, systems and job requirements; Schneider (1980) and Schneider and Bourne (1985) that examine the dimensions of management practices and dominated atmosphere; Hammer (1988), Zuboff (1988), Jordan (1986), Ezazi, et al. (2011), and Mirkamali, et al. (2012) that examine the dimensions of systems, atmosphere, management practices, individual needs and values.
Among the dimensions of financial institutions, management dimension was at the lowest level. Therefore, the management aspect has more effect on privatized financial institutions than other factors. The culture dimension has less effect on financial ratios of privatized financial institutions than other factors. Not using the dimensions of Burk-litwin model decreases the return on assets ratio (ROA) in the privatized financial institutions rather than initially private institutions. Moreover, not using dimensions of Burk-litwin model reduces the return on equity ratio (ROE) for privatized financial institutions rather than initially private institutions, and not using dimensions of Burk-litwin model increases the ratio of public, administrative and organizational cost to the total cost of company in the privatized financial institutions rather than initially private institutions.
Management dimension is at the lowest level among the dimensions of Burk- litwin; thus, this factor has more effect on financial ratios of privatized institutions than other factors. It is suggested that managers of financial institutions acquire expertise education, and skills for the successful implementation of privatization. To train skilled staff, we should empowerthem with a high commitment to change through trust-building, capacity-building and accountability in their organizations, and to providethem with a culture that is open to organizational change. Given the importance of the organizational change, in order to survive in the current extensive competitive scene and with regard to the high potential of the country for research in this area, it is suggested that the causes of success and failure for the phenomenon of organizational change be scrutinized in other organizations, so that, the reliability of the results of this research can be tested in other cases.
Shams o sadat Zahedi Zahedi; Leila Mortazavi
Abstract
The purpose of this research, was to determine the impact of contextual variable of change on commitment to change in related to process of privatization through emotional envolvment. In this regard, randomize stratified sampling was selected and 104 managers and specialists of Khorasan Province Regional ...
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The purpose of this research, was to determine the impact of contextual variable of change on commitment to change in related to process of privatization through emotional envolvment. In this regard, randomize stratified sampling was selected and 104 managers and specialists of Khorasan Province Regional Electric Company participated in the study. To collect data was used a questionnaire with 9 variables and 69 items based on 5-level Likert Scale. The questionnaire validity by a content method and its reliability by cronbakh alpha, were confirmed. Also being normal of variables distribution was supported by Kolmogorov – Smirnov test. For analyzing research data, were used Structural equations model and Path analysis by using Lisrel software. The results of this research showed that first, the level of commitment to change and emotional involvement in the sample is upper than mean. Second, emotional involvement has a mediator role between commitment to change and all of contextual factors of change except, reward; psychological safety and job satisfaction variables.
Mohammad Hossein Vadiei; Said Asyabani
Abstract
Nowadays reforming, of the ownership structure, from governmental ownership to privatization ownership, is a way of gaining constant and dynamic development. One of the best ways of privatization is denoting stocks by stock change and one of the most important factors to reach its fulfillment is how ...
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Nowadays reforming, of the ownership structure, from governmental ownership to privatization ownership, is a way of gaining constant and dynamic development. One of the best ways of privatization is denoting stocks by stock change and one of the most important factors to reach its fulfillment is how to price the denoted stocks. So far due to the importance and greatness of pricing stocks, many models based on different schools of thought have been offered that regarding with economic, politic, regional and other conditions have had various and different usages.
In this research, the denoted price in government firms including privatization was compared with the pricing of the stocks of the mentioned firms based on theoretical- Scientific models in Tehran Stocks. So, Growth Index Model of the Value and Price-Book Value of Stock Model of similar firms were selected from evaluation models of stocks in point of comparable firms' view, and then the stock prices of government firms including denoted were calculated and compared based on these models during 1384-1386.
The Results showed that the prices of denoted stocks (denoted by Privatization Organization) in compared with those obtained from Growth Index of similar firms, were closed, but not to the model based on street price to book price of the similar firms' price.
Mahmood Hoshmand; Mohammad Farmanbar; Mohammad Keivanfar
Abstract
Privatization is a process in which the ownership of governmental economic enterprises is transferred to private sector. According to other countries’ experiences and discussed economic theories over the past decades, privatization has improved the performance of companies and economic enterprises. ...
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Privatization is a process in which the ownership of governmental economic enterprises is transferred to private sector. According to other countries’ experiences and discussed economic theories over the past decades, privatization has improved the performance of companies and economic enterprises. In this study, financial ratios of companies were used as their performance indicators. This paper studies the function of companies that were assigned to private sector in Iran, before and after assignment. Results show that performance indicators of companies that transferred to private sector through stock exchange did not improve during the two following years after that.
Houshang Taghizadeh; Mohsen Pourebadollahan; Davoud Aboutalebi
Abstract
Privatization is one of the policies adopted by the governments all over the world for economic and administrative reforms. The main objectives for these reforms include the cost reduction and the productivity improvements, among others. This paper also studies the impact of privatization in the East ...
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Privatization is one of the policies adopted by the governments all over the world for economic and administrative reforms. The main objectives for these reforms include the cost reduction and the productivity improvements, among others. This paper also studies the impact of privatization in the East Azerbaijan's telecommunications company on its costs reduction. To that end, using Mann Whitney test we compare three types of costs, i.e. the operation cost, the repair cost, and the cost of labor between 12 transferred to private sector and 12 state owned telecommunications utilities in 2005. The results are in favor of transferred ones and show that the private-owned sectors are operating with less cost than the state-owned telecommunication utilities.
Mahdi Khodaparast Mashhadi; Mostafa Salimifar; Meysam Taherian
Abstract
In recent years, outsourcing as a means of promoting and development of productivity has been considered to be in line with the country's 20-years vision document and article 44 of the constitution by administrators of organizations. This process has been implemented in different forms in order to effectively ...
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In recent years, outsourcing as a means of promoting and development of productivity has been considered to be in line with the country's 20-years vision document and article 44 of the constitution by administrators of organizations. This process has been implemented in different forms in order to effectively downsize the government.
IUTUn this study, technical efficiency and scale efficiency of eight power distribution companies of Mashhad, before and after outsourcing or within three years 2006 to2008, is evaluated by data envelopment analysisUTU. UTUThis study developed data envelopment analysis to a dynamic model by utilizing of window analysisUTU in order to UTUevaluate changes in the context of time before and after outsourcing.
UTThe results of this study show that the efficiency of Mashhad Power Distribution Company has been reduced significantly compared with before the transfer.
