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The Optimal Time to Privatize Oil Public Sector in Saudi Arabia

Author

Listed:
  • Musa Foudeh

    (College of Economics and Administrative Sciences, Al-Imam Muhammad Ibn Saud University, P.O. Box 5701, Al-Riyadh 11432, Saudi Arabia.)

Abstract

Based on Jiahua Che dynamic model of privatization (2007) and the experience of privatizing the Mexican petroleum company (Pemex) in 2013, this paper tries to answer this question: Is it time to privatize Aramco? The paper concludes that Aramco will not be privatized, at least during the year 2018, due to the Saudi budget dependence on oil, low level of private property rights, lack of transparency and absence of financial disclosure.

Suggested Citation

  • Musa Foudeh, 2018. "The Optimal Time to Privatize Oil Public Sector in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 312-320.
    • Handle: RePEc:eco:journ2:2018-03-38
    as

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    References listed on IDEAS

    as
    1. Gupta, Nandini & Ham, Jhon C. & Svejnar, Jan, 2008. "Priorities and sequencing in privatization: Evidence from Czech firm panel data," European Economic Review, Elsevier, vol. 52(2), pages 183-208, February.
    2. Musa Foudeh, 2017. "The Long Run Effects of Oil Prices on Economic Growth: The Case of Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 171-192.
    3. Katz Barbara G. & Owen Joel, 1993. "Privatization: Choosing the Optimal Time Path," Journal of Comparative Economics, Elsevier, vol. 17(4), pages 715-736, December.
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    Cited by:

    1. Roy, Arup, 2023. "Nexus between economic growth, external debt, oil price, and remittances in India: New insight from novel DARDL simulations," Resources Policy, Elsevier, vol. 83(C).
    2. Abdul Rahman, 2020. "Long run Association of Stock Prices and Crude Oil Prices: Evidence from Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 124-131.

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    More about this item

    Keywords

    Saudi Arabia economy; Privatization; Government ownership; Private ownership.;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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