Privatization in the East Azerbaijan's Telecommunications Company and its Impact on Cost Reduction

اقتصاد پولی مالی

Article 9, Volume 16, Issue 29, January 2011   

Document Type: پژوهشی

DOI: 10.22067/pm.v16i29.27201

Authors

Houshang Taghizadeh^* ; Mohsen Pourebadollahan; Davoud Aboutalebi

Abstract

Privatization is one of the policies adopted by the governments all over the world for economic and administrative reforms. The main objectives for these reforms include the cost reduction and the productivity improvements, among others. This paper also studies the impact of privatization in the East Azerbaijan's telecommunications company on its costs reduction. To that end, using Mann Whitney test we compare three types of costs, i.e. the operation cost, the repair cost, and the cost of labor between 12 transferred to private sector and 12 state owned telecommunications utilities in 2005. The results are in favor of transferred ones and show that the private-owned sectors are operating with less cost than the state-owned telecommunication utilities.

Keywords

Privatization; Telecommunications; East Azerbaijan