The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms
This article examines the possibility of improved social welfare as a result of the entry of a new private firm, domestic or foreign, into the upstream industry, in a situation where the upstream industry had a monopoly structure with the existence of a single government firm. A public firm can be p...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Institute for Management and Planning Studies
2023-12-01
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| Series: | برنامهریزی و بودجه |
| Subjects: | |
| Online Access: | http://jpbud.ir/article-1-2236-en.pdf |
| _version_ | 1827375449021349888 |
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| author | Hamideh Esfahani Mohammad Alikhani Mehdi Fadaee |
| author_facet | Hamideh Esfahani Mohammad Alikhani Mehdi Fadaee |
| author_sort | Hamideh Esfahani |
| collection | DOAJ |
| description | This article examines the possibility of improved social welfare as a result of the entry of a new private firm, domestic or foreign, into the upstream industry, in a situation where the upstream industry had a monopoly structure with the existence of a single government firm. A public firm can be privately or publicly managed, that is to say that it aims to either maximize profits or social welfare. The results of this study show that while in the monopoly structure, the privatization of a state-owned enterprise is an ineffective policy in terms of social welfare, the increase in competition leads to the justification of privatization, provided that the technology of the new domestic enterprise is more efficient than the state-owned enterprise within a certain range. If the new domestic enterprise is much more efficient than the state-owned enterprise or has a relatively similar technology, it will still be a suboptimal policy to privatize the state-owned enterprise. On the other hand, if the new entrant is a foreign company, the privatization of the state-owned company will be the optimal policy in a situation where the foreign company has a much more efficient technology than the state-owned company. |
| first_indexed | 2024-03-08T11:51:00Z |
| format | Article |
| id | doaj.art-098be60e16a14124b65c89f1b8f33203 |
| institution | Directory Open Access Journal |
| issn | 2251-9092 2251-9106 |
| language | fas |
| last_indexed | 2024-03-08T11:51:00Z |
| publishDate | 2023-12-01 |
| publisher | Institute for Management and Planning Studies |
| record_format | Article |
| series | برنامهریزی و بودجه |
| spelling | doaj.art-098be60e16a14124b65c89f1b8f332032024-01-24T09:09:19ZfasInstitute for Management and Planning Studiesبرنامهریزی و بودجه2251-90922251-91062023-12-012834370The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned FirmsHamideh Esfahani0Mohammad Alikhani1Mehdi Fadaee2 Department of Economics and Systems, Institute for Management and Planning Studies, Tehran, Iran. Institute for Management and Planning Studies, Tehran, Iran. Department of Economics and Systems, Institute for Management and Planning Studies, Tehran, Iran This article examines the possibility of improved social welfare as a result of the entry of a new private firm, domestic or foreign, into the upstream industry, in a situation where the upstream industry had a monopoly structure with the existence of a single government firm. A public firm can be privately or publicly managed, that is to say that it aims to either maximize profits or social welfare. The results of this study show that while in the monopoly structure, the privatization of a state-owned enterprise is an ineffective policy in terms of social welfare, the increase in competition leads to the justification of privatization, provided that the technology of the new domestic enterprise is more efficient than the state-owned enterprise within a certain range. If the new domestic enterprise is much more efficient than the state-owned enterprise or has a relatively similar technology, it will still be a suboptimal policy to privatize the state-owned enterprise. On the other hand, if the new entrant is a foreign company, the privatization of the state-owned company will be the optimal policy in a situation where the foreign company has a much more efficient technology than the state-owned company.http://jpbud.ir/article-1-2236-en.pdfprivatizationupstream of the industrial chaindomestic private firmforeign private firmsocial welfare |
| spellingShingle | Hamideh Esfahani Mohammad Alikhani Mehdi Fadaee The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms برنامهریزی و بودجه privatization upstream of the industrial chain domestic private firm foreign private firm social welfare |
| title | The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms |
| title_full | The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms |
| title_fullStr | The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms |
| title_full_unstemmed | The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms |
| title_short | The Effect of the Entry of Private Firms in the Upstream of the Industry Chain on the Privatization of State-owned Firms |
| title_sort | effect of the entry of private firms in the upstream of the industry chain on the privatization of state owned firms |
| topic | privatization upstream of the industrial chain domestic private firm foreign private firm social welfare |
| url | http://jpbud.ir/article-1-2236-en.pdf |
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