Editing Privatization (section)

==Reasons for privatization==

There are various reasons why a government may decide to privatize; commonly due to economic reasons. The economic factors that influence a government's decision to privatize assume this will lower government debt. Studies have shown that governments are more likely to privatise with higher public debt, typically because governments do not have the needed time to wait for a return.<ref>{{cite journal |last1=Ramamurti |first1=Ravi |title=Why Are Developing Countries Privatizing? |journal=Journal of International Business Studies |date=1992 |volume=23 |issue=2 |page=229|doi=10.1057/palgrave.jibs.8490266 }}</ref> Another economic factor that influences this area is the resulting efficiency of SOEs once privatised. Commonly, governments aren’t able to provide the required investments required to ensure profitability for various reasons. These factors may lead to a government deciding to privatize.<ref>{{cite journal |last1=Radíc |first1=Mislav |title=Privatization: Implications of a Shift from State to Private Ownership |journal=Journal of Management |date=2021 |volume=47 |issue=6|pages=1596–1629 |doi=10.1177/0149206320988356 |url=http://eprints.lse.ac.uk/108992/2/RavasiRadicMunirJoM2021Pre_print.pdf }}</ref>