Working Papers

Savings and Privatization

Publication Number: ECESWP8-E&A

December, 1996

Author : Ahmed Galal

Type : Working Papers

Saving is critical for economic growth. Yet there is general agreement that saving follows growth. The question addressed in this paper is whether and how much additional savings can be generated from privatization and other reforms of the public enterprise sector.
This paper argues that public enterprise reform can enhance national savings because it leads to improved productivity and greater inflow of foreign capital. It estimates the potential savings from reforming one-third of the public enterprise sector in Egypt and makes some recommendations to speed up the reform process of the sector.