Effects of Privatization on Economic Growth in the MENA Countries over the Period 1999-2014

The transference of economic activities to the private sector and the government withdrawal of its economic activities are introduced as dominant solutions to today's economic problems and growth in countries, over the past two decades. This strategy -which takes place in order to return the government activities to the private sector known as privatization- can make fundamental changes in behavior and nature of the economic activities. Unlikely to the previous studies, which have been extremely done so far regarding the effects of privatization but in micro scale there are still few studies regarding the practical experiences of the privatization in different countries, in macro scale.This researchdemonstrates the effects of privatization on economic growth with controlling of critical Levine and Renelt (1992) growth models, as well as, empirical findings from previous studies, about MENA countries, for the period between 1999-2014 and by using of the FGLS method.
The results show that the impact of private sector on economic growth has been negative.