MAGINAL PROFITABILITY OF PRIVATISED SOEs: EVIDANCE OF PANEL ANALYSIS

Government intervention in managing the economy is well pronounced and documented in economic literature prior to deregulation era. The failure of free market mechanism leads to government intervention in managing the economic endeavor. In Nigeria, it is assumed that privatizing public enterprises will yield benefits relating to growth, profit, renewed investment, budgetary savings and preservation of scares resources. The paper examines the growth profit margin performance of privatized state-owned enterprises using panel data method of analysis. Various diagnostic checking has been conducted on the model. The result shows that the coefficient of privatization and the rest of the variables are statistically insignificant at any level of significance which means the variables have no significant statistical relationship with GPM. This implied that the implementation of privatization policy on the sampled Nigerian SOEs have not significantly improved their growth profit margin