Investigation the Effects of Privatization on Economic Growth in D-8 Countries, Using the Dynamic Panel Estimated by GMM Method

The transference of economic activities to the private sector and the government withdrawal of its economic activities are introduced as dominant solutions to today''s economic problems and growth in countries، over the past two decades. This strategy -which takes place in order to return the government activities to the private sector known as privatization- can make fundamental changes in behavior and nature of the economic activities. Unlikely to the previous studies، which have been extremely done so far regarding the effects of privatization but in micro scale there are still few studies regarding the practical experiences of the privatization in different countries، in macro scale. This research demonstrates the effects of privatization on economic growth with controlling of critical Levine and Renelt (1992) growth models، as well as، empirical findings from previous studies، about D-8 countries، for the period between 2001-2009 and by using of the dynamic panel generalized method of moments (GMM). The results confidently prove that، as was expected، the privatization strategy has positive (although negligible) and significant impacts on economic growth in the mentioned countries.