IDEAS home Printed from https://ideas.repec.org/a/taf/oxdevs/v28y2000i1p19-32.html
   My bibliography  Save this article

The Disinvestment of Public Sector Enterprises: The Indian Experience

Author

Listed:
  • T. G. Arun
  • F. I. Nixson

Abstract

This paper examines the disinvestment of shares of public sector enterprises (PSEs) in India since 1991. The poor performance of PSEs made reform increasingly urgent in the context of the broader strategy of the liberalization of the economy to deal with the perceived weaknesses of India's development strategy. The paper argues that the main aim of disinvestment has been to reduce the public sector borrowing requirement, at the cost of the restructuring and rationalization of PSEs in particular and the public sector in general. The process of disinvestment has been a complex one and has not been free of criticism. Alleged under-pricing of shares sold, lack of transparency, limited public support for disinvestment and the absence of a common set of objectives between the Government of India and the Disinvestment Commission have been major problems. In many respects, India provides a checklist of how not to disinvest.

Suggested Citation

  • T. G. Arun & F. I. Nixson, 2000. "The Disinvestment of Public Sector Enterprises: The Indian Experience," Oxford Development Studies, Taylor & Francis Journals, vol. 28(1), pages 19-32.
    • Handle: RePEc:taf:oxdevs:v:28:y:2000:i:1:p:19-32
    DOI: 10.1080/713688302
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/713688302
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/713688302?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ajay Chhibber & Swati Gupta, 2017. "Public Sector Undertakings: Bharat’s other Ratnas," Working Papers 2017-6, The George Washington University, Institute for International Economic Policy.
    2. Ghosh, Saibal, 2008. "Does divestment matter for firm performance?: Evidence from the Indian experience," Economic Systems, Elsevier, vol. 32(4), pages 372-388, December.
    3. T.G. Arun & J.D. Turner, 2003. "Financial Sector Reforms and Corporate Governance of Banks in Developing Economies: The Indian Experience," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 4(2), pages 187-204, September.
    4. Arun, Thankom G., 2003. "Regulation and Competition: Emerging Issues in an Indian Perspective," Centre on Regulation and Competition (CRC) Working papers 30620, University of Manchester, Institute for Development Policy and Management (IDPM).
    5. Ajay Chhibber & Swati Gupta, 2017. "Bolder Disinvestment or Better Performance Contracts? Which Way Forward for India’s State-Owned Enterprises," Working Papers id:12127, eSocialSciences.
    6. Matthew McCartney, 2009. "‘Episodes’ or ‘Evolution’," Journal of South Asian Development, , vol. 4(2), pages 203-228, July.
    7. Chhibber, Ajay & Gupta, Swati, 2017. "Bolder Disinvestment or Better Performance Contracts? Which Way Forward for India's State-Owned Enterprises," Working Papers 17/205, National Institute of Public Finance and Policy.
    8. Ajay Chhibber, 2021. "India's Interventionist State: Reduce Its Scope and Improve Its Capability," Working Papers 2021-02, The George Washington University, Institute for International Economic Policy.
    9. Priya Mandiratta & G.S. Bhalla, 2017. "Pre and Post Disinvestment Performance Evaluation of Indian CPSEs," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 42(2), pages 120-134, May.
    10. Ajay Chhibber & Swati Gupta, 2017. "Bolder Divestment Not Better Performance Contracts are the Solution for India's Public Sector," Working Papers 2017-19, The George Washington University, Institute for International Economic Policy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. SangHyun Cheon & Dong-Wook Song & Sungjin Park, 2018. "Does more competition result in better port performance?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 433-455, September.
    2. Baltagi, Badi H. & Yen, Yin-Fang, 2014. "Hospital treatment rates and spillover effects: Does ownership matter?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 193-202.
    3. Anastassios Gentzoglanis, 2002. "Privatization, Investment and Efficiency in the Telecommunications Industry: Theory and Empirical Evidence from MENA Countries," Working Papers 0230, Economic Research Forum, revised 10 Oct 2002.
    4. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    5. Héctor G. González Padilla, 2009. "La privatización de bancos públicos provinciales en Argentina en 1993-2001," CEMA Working Papers: Serie Documentos de Trabajo. 401, Universidad del CEMA.
    6. N.F. Cruz & R.C. Marques & A. Marra & C. Pozzi, 2014. "Local Mixed Companies: The Theory And Practice In An International Perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 1-9, March.
    7. Kazuhiro Ohnishi, 2014. "Sequential Mixed Competition with a Foreign Joint-stock Firm," International Journal of Social Sciences and Management Studies (IJSSMS), The Economics and Social Development Organization (TESDO), vol. 1(2), pages 38-52, June.
    8. Orietta DESSY & Massimo FLORIO, 2004. "Workers' earnings in the UK before and after privatisation: a study of five industries," Departmental Working Papers 2004-13, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Janusz A. Ordover & Russell W. Pittman & Paul Clyde, 1994. "Competition policy for natural monopolies in a developing market economy1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(3), pages 317-343, September.
    10. Bottasso, Anna & Conti, Maurizio, 2003. "Cost Inefficiency in the English and Welsh Water Industry: An Heteroskedastic Stochastic Cost Frontier Approach," Economics Discussion Papers 8872, University of Essex, Department of Economics.
    11. Diane Sharratt & Bitten H. Brigham & Martin Brigham, 2007. "The Utility of Social Obligations in the UK Energy Industry," Journal of Management Studies, Wiley Blackwell, vol. 44(8), pages 1503-1522, December.
    12. Ornella Tarola, 2010. "Public Utilities: Privatization without Regulation," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 4(1), pages 062-078, March.
    13. D. R. Myddelton, 2014. "The British Approach to Privatisation," Economic Affairs, Wiley Blackwell, vol. 34(2), pages 129-138, June.
    14. Michael A. Crew & Paul R. Kleindorfer, 2013. "Privatization of postal operators: old arguments and new realities," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Reforming the Postal Sector in the Face of Electronic Competition, chapter 1, pages 1-19, Edward Elgar Publishing.
    15. James A. Schmitz, 1996. "The role played by public enterprises: how much does it differ across countries?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 20(Spr), pages 2-15.
    16. Parker, David, 2001. "Economic Regulation: A Preliminary Literature Review and Summary of Research Questions Arising," Centre on Regulation and Competition (CRC) Working papers 30616, University of Manchester, Institute for Development Policy and Management (IDPM).
    17. Paul Walker, 2016. "From complete to incomplete (contracts): A survey of the mainstream approach to the theory of privatisation," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(2), pages 212-229, August.
    18. A. Brandão & S. Castro, 2007. "State-owned enterprises as indirect instruments of entry regulation," Journal of Economics, Springer, vol. 92(3), pages 263-274, December.
    19. Chen, Ruiyuan & El Ghoul, Sadok & Guedhami, Omrane & Wang, He, 2017. "Do state and foreign ownership affect investment efficiency? Evidence from privatizations," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 408-421.
    20. Stephen King & Rohan Pitchford, 2008. "Private or Public? Towards a Taxonomy of Optimal Ownership and Management Regimes," The Economic Record, The Economic Society of Australia, vol. 84(266), pages 366-377, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oxdevs:v:28:y:2000:i:1:p:19-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CODS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.