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The Impact of the Privatization and Expenditures on the State Employments in the US - Research Paper Example

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This study investigates the impact of the privatization and state expenditures on the state employees in the US. Privatization of public services is mostly carried out in order to reduce the government’s cost of operations leading to a new source of funds for investments…
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The Impact of the Privatization and Expenditures on the State Employments in the US
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Download file to see previous pages The data in this research consisted of the expenditures of 33 states in the U.S. and their respective employment level in each state for 2000, 2006 and 2007 years. State employment as a dependent variable, and expenditure and privatization as independent variables were analyzed for the following three years 2000, 2006 and 2007 respectively (Brown & Weisbenner, 2009). In conclusion, Privatization is adopted by the governments in order to transfer the ownership of the management of any service or a property from the control of the public or government to the private sector. Privatization may be complete or incomplete depending on the policies of the government and the fiscal pressure on the public sector (Pappa, 2009).
Privatization is the procedure of transferring the ownership of a property or management of any activity or services from the hands of the public or the government to a private owner. The privatization leads to transfer of the properties and services from the public to the private sector which helps the government to increase the efficiency of operation and management of assets in a better way. The government has started to sell off or allow the lease of established assets of the public into the hands of the private sector for the purpose of cost reduction, increasing efficiency of operation, maintenance and open avenues for the source of funds required for new investments.
Privatization has been the trend of the governments all over the world. The scope of privatization has not been much in the U.S. as the economy was developed as to be a free market economy. Moreover, the government has not owned several industries unlike other countries of the world. This provided little scope for the government to distribute public ownership to the private sector.  ...Download file to see next pagesRead More
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