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TunisiaManagement practices and the partial government ownership of firms in the Middle East and North Africa
August 26, 2022
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Better management practices and a disentanglement from government ownership could yield better results for businesses in the Middle East and North Africa, data from the Enterprise Surveys show. Well-managed firms are more productive, have higher operating profits, are more outward oriented and invest more in research and development. But company ownership also plays a role.
Evidence from the Enterprise Surveys points to a negative relationship between partial government ownership and management practices in the Middle East and North Africa, where there is a high ratio of state-owned firms and where political connections play an important role in business management.
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