Savings and Privatization

Author(s): Dr. Ahmed Galal
Publication Number: ECES-WP8-E


Saving is critical for economic growth. Yet there is general agreement that savings 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.
The 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.

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