The Impact of Airport and Seaport Privatization on Efficiency and

Performance

The Impact of Airport and Seaport Privatization on Efficiency and

Performance

Summary

Privatization is defined as the phenomenon of sale of enterprises owned by the state to the private sector. Many developing countries or many instable companies adapts the phenomenon of transferring of any functions from the government to the private sectors as a policy agenda usually to generate more revenue than what is collected at present.

However, privatization does not always guarantee progress and development in a developing company or business. Moreover, greater amount of revenue produced is also not guaranteed. Therefore, the article emphasizes on the fact that privatization has different effects in its different stages. Moreover, various economies are affected in different ways by privatization.

The process of privatization in the paper is basically discussed with the help of privatization techniques adapted by the airports and sea ports in various countries. Many countries all over the globe including England, Japan, Taiwan, Thailand and many others have privatized many of their ports and airports to analyze the pre and post analyze affects. This is also done to gain information of positive effects of privatization obtained when applied to companies with different nature.

The paper also explains the possibilities of an already developed airport or sea port remaining u affected by privatization. Therefore, there were several countries where the approach when applied to the ports gave no benefits at all.

The airport's and seaport's economy after privatization is also dependent on various social and cultural. However, the fact the economically struggling ports as a result of privatizations are usually said to have a positive impacts on both performance and efficiency. Moreover, the economic frameworks of various organizations, in this case port, also perfects performance and efficiency.

Discussion of Whether the Article is Empirical or Theoretical?

The research paper provided is hardly empirical, it's more like an experiment, it might come up with the better outcome but the factors on the basis of which the performance has been measured are not spot-on. Privatization of the major transportation structure of the country might be more profitable but can affect the national security and economy.

As Seaports and Airports have the major strategic link with the other parts of the world. The import and exports are totally dependent on these two transportation sectors, privatizing the entire transport structure of the country might help in enhancing the performances and clearing the debts for the country and can restrain any political involvement to these sectors but on the other hand it will pose national security concerns and government and the people will be dependent on the particular privately owned organization.

The existing evidences of privatization provided in this paper are somewhat practical but depending upon some of the critical factors, including socio-economical factor, political factor and economic efficiencies. It varies from country to country as every country has its own structure and provisions.

In recent decades in every country of every continent, the governments have started to sell off state-owned properties and ...