Failure of Public Sector Enterprises: A Case Study of SAARC Countries

Abstract

Public sector enterprises (PSEs) are the state owned enterprises, controlled and supported financially by the government. PSEs are one of the most important sectors of the nation which earn for the government and provide goods and services to both nation and its nationals. But now PSEs are bleeding profusely. Many reasons are provided for that poor condition of PSEs, bad governance being one of them, it is hypothesized that bad governance is the main cause of failure of PSEs. To empirically prove that governance has effect at the performance of PSEs panel for six South Asian countries is used. Results are regressed by simple panel least square and it is found that governance  effects the performance of PSEs, so to better the performance of PSEs it is important to enhance the rank of Governance in the country