Impact Of Privatisation Policies On Public Enterprises In Ghana

Across the globe,privatisation has become one of the key instruments in the economic reform process.The important of this research is to find out the outcome of privatisation on state-owned enterprises.Current situation of Ghana s privatisation has increasingly been opposed and supported by people involves.Some people in Ghana has the perception that privatisation is not a means of reviving the downs of the state owed enterprises others too are in the opinion that is the best way to help SOE s.The central research objective of this study will tests the performance changes in SOEs following privatization and by how far from what would have been expected by chance,and also to find out if the critics of privatization are true that,suggest to contemplate some alternating policy measure to address such critics.To achieve the objective of this study,a panel regression model was employed to test theoretical relationship between firm profitability and performance of state enterprises.This model allowed for the pooling of observation on a cross-section of units over several time periods.The results from the panel regression showed that the fixed effects model was appropriate to examine the impacts of the regression.After the analysis,the investigation revealed that there is a significant positive relationshi 8p between privatization and the performance of state enterprises.Suggestions were later given to help the government improve on privatisation reform and its as follows: the Government should critically assess the state enterprise in order to privatize companies that have more competition in the market rather that privatizing enterprises that are monopolized,there should be a clearly lay down policies with purpose(Usage)of the enterprise been privat ized in other to know the correct estimate of the enterprise to be privatized and the government should ensure that the sales proceeds are used to create or expand new assets for the country.