Abstract
The Iranian government faces two significant challenges in the last decades, namely high current budget spending and low export income due to international sanctions. Low productivity of State-Owned Enterprises (SOEs) and low transparency of budget spending are among the major causes of the high budget deficit. Although Iran started privatization of the public companies a few years back, privatization has not achieved the pre-determined goals so far. This chapter has tried to review the possibility of privatizing the SOEs in Iran as the enterprises are vital in managing the country in the mid-term and long-term. Also, we discuss the process of privatization in Iran, its challenges, and possible solutions. In this regard, we have reviewed the experiences of the first wave of privatization in Iran and provided possible approaches to increase the chance of successful privatization of the SOEs and their productivity in the form of policy recommendations.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
1368–1372 (Persian calendar years).
- 2.
1374–1378 (Persian calendar years).
- 3.
1388 (Persian calendar year).
References
Alipour, M. (2013). Has privatization of state-owned enterprises in Iran led to improved performance? International Journal of Commerce and Management. https://doi.org/10.1108/IJCoMA-03-2012-0019.
Azar, A., Lashgari, Z., & Amraee, H. (2011). The comparative survey of the performance of the privatized its challenges and solutions. Journal of Financial Economics, 5(16), 9–25.
D’Souza, J., Megginson, W., & Nash, R. (2007). The effects of changes in corporate governance and restructurings on operating performance: Evidence from privatizations. Global Finance Journal, 18(2), 157–184.
ILO. (2020). ILOSTAT database. Geneva: International Labour Organization. Data retrieved in June 21, 2020.
Jamshidian, M. (2005). Productivity improvement and strategies for state owned enterprises. Iranian Economic Review, 10(2), 39–55.
Onis, Z. (1991). The evolution of privatization in Turkey: The institutional context of public-enterprise reform. International Journal of Middle East Studies, 23(2), 163–176.
Phi, N. T. M., Taghizadeh-Hesary, F., Tu, Ch. A., Yoshino, N., & Kim, C. J. (2020). Performance differential between private and state-owned enterprises: An analysis of profitability and solvency. Emerging Markets Finance and Trade. https://doi.org/10.1080/1540496X.2020.1809375.
Razmi, S. A. (2007). Privatization in Iran reasons and performance. Mashhad: Mashhad University.
Saebi, M. (1999). Privatization in the Islamic Republic of Iran. Asian Review of Public Administration, 6(2), 156–160.
Sloman, J., & Wride, A. (2009). Economics (7th ed.). Upper Saddle River: Prentice Hall.
Taghavi. (1994). Privatization in the first development plan of the Islamic Republic of Iran (in Persian). Tahghighate Mali, 1(4), 35–71.
Taiebnia, A., & Mohamadi, H. (2004). Comparing the efficiency of investments in Irans private and governmental sectors: An approach to privatization. The Journal of Planning and Budgeting, 9(4), 3–36.
Uvalic, M. (2003). Privatization approaches: Effects on SME creation and performance. In R. J. McIntyre & B. Dallago (Eds.), Small and medium enterprises in transitional economies (pp. 171–184). Houndmills/New York: Palgrave Macmillan in association with the UN University/WIDER.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 Asian Development Bank Institute
About this chapter
Cite this chapter
Fazelian, M., Peimani, H., Taghizadeh-Hesary, F. (2021). Privatization of Iranian State-Owned Enterprises: Barriers and Policy Recommendations. In: Taghizadeh-Hesary, F., Yoshino, N., Kim, C.J., Kim, K. (eds) Reforming State-Owned Enterprises in Asia. ADB Institute Series on Development Economics. Springer, Singapore. https://doi.org/10.1007/978-981-15-8574-6_9
Download citation
DOI: https://doi.org/10.1007/978-981-15-8574-6_9
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-15-8573-9
Online ISBN: 978-981-15-8574-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)