The Impact of the Privatization and Expenditures on the State Research Paper

The Impact of the Privatization and Expenditures on the State Employments in the US - Research Paper employmentThe data in this research consisted of the expenditures of 33 states in the U.S. and their respective employment level in from each one state for 2000, 2006 and 2007 years. State employment as a dependent variable, and expenditure and privatization as independent variables were analyse for the following three years 2000, 2006 and 2007 respectively (Brown & Weisbenner, 2009). In conclusion, Privatization is adopted by the regimes in order to canalise the ownership of the watchfulness of any service or a property from the control of the national or government to the hugger-mugger sector. Privatization may be complete or incomplete depending on the policies of the government and the monetary pressure on the public sector (Pappa, 2009).Privatization is the procedure of transferring the ownership of a property or focus of any activity or services from the hands of the p ublic 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 effected assets of the public into the hands of the private sector for the purpose of cost reduction, increasing efficiency of operation, maintenance and spread 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 a good deal 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.