Effects of Privatization on Australian Economy

RUNNING HEAD: EFFECTS OF PRIVATIZATION ON AUSTRALIAN ECONOMY 0
EFFECTS OF
PRIVATIZATION ON
AUSTRALIAN
ECONOMY

EFFECTS OF PRIVATIZATION ON AUSTRALIAN ECONOMY 1
Table of Contents
Introduction......................................................................................................................................2
Literature review..............................................................................................................................2
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

EFFECTS OF PRIVATIZATION ON AUSTRALIAN ECONOMY 2
Introduction
Privatization means moving something from the public sector into the private sector. It is also
sometimes used for deregulation when a heavily regulated private company or industry becomes
less regulated (Schwartzberg, 2018). The government functions and services may also be
privatized; in this case, private entities are tasked with the implementation of government
programs or performance of government services (Paz-Fuchs et al., 2018). Privatization may
lead to a virtuous cycle among productivity, exports, and employment. In this report, the various
articles are reviewed on the “Effects of privatization on Australian economy”.
Literature review
Kallianiotis conducted the study to know the effects of privatization in Australia economy,
markets of financial, social welfare, employment as well as national wealth (Kallianiotis,
2018). The researcher believed that moderate privatization, which is done under the normal
situations result in increasing the efficiency, liquidity in the market of financial as well as
productivity in the country. However, sometimes it cause huge unemployment, dependence on
foreign funds as well as more of multinational firms, sometimes also decline of social welfare.
The researcher investigates he effects in Australia, through various articles, newspaper by using
the secondary sources and finds that the contribution to Commonwealth budget revenue from
sales of a number of enterprises, loss in the policy of public for the people as well as demolition
of the nations which are sovereign. The researcher also finds that optimal levels of privatization
are that which maximize the social welfare as well as does not remove the capital of the nation.
Reinsberg, Stubbs, Kentikelenis, King Objective of the study to know the impact of privatization
in the Australia economy, the researcher conducted this study because the international
companies has fighting against the high rate of corruption in Australia (Reinsberg et al.,
2019). The pressure of international monetary funds may force to implement the policies of
anti-corruption for reducing the corruption. To analyze the effect of privatization the researcher
does the analysis of instrumental-variable regression and investigates the data of international
monetary fund. From the analysis the researcher finds that in Australia conditions to after
privatization exert major negative effect on controlling the corruption. on the other hand, areas of

EFFECTS OF PRIVATIZATION ON AUSTRALIAN ECONOMY 3
intervention of International Monetary Fund’s are not constantly associated to the abatement of
corruption. The researcher finds that in Australia, it can offer the lessons of policy concerning
the plan of conditionality, which can keep away the large scale privatization, particularly under
the circumstances of weaker accountability. The weakness is that international monetary fund
role in privatization leads high rate of corruption in the economy of Australia.
Corruption
SOURCE: (Reinsberg et al., 2019)
According to Boubakri, Guedhami, Kwok and Wang privatization is considered the purposeful
deal by a government of the state owned enterprises as well as assets to the agents of private
economic (Boubakri et al., 2019). Researcher believes that earlier studies were conducted to
know the impact of privatization in the developing countries, so the current study is conducted to
know that whether privatization is considered a socially responsible reform in Australia. The
researcher conducted the analysis by contrasting the performance of corporate social
responsibility in the privatized firms. The analysis was also done by reviewing the privatization
literature to examine the social influence of privatization in Australia. The researcher finds that
the privatization results in higher performance of corporate social responsibility by the privatized
firms in Australia. The researcher also finds that high performance of CSR leads an adverse
effect on the residual ownership of state. In future the researcher can study the level of impact
the privatization have on the performance of the companies in Australia. Pham conducted the
study to know the impact of privatization on the position of financial as well as organization
performance in the emergence market in the developing countries like Vietnam, Australia
(Pham, 2017). The researcher use the audit financial statement of the former state owned