The Threat of Privatization: The Impetus Behind Government Performance

There has not been a great deal of research, especially empirical research that examines the possible relationship between privatization and increased government performance. This study looks at the current privatization literature which suggests that when the threat of privatization looms, there may be a correlation with improved government performance. While many surmise that privatization is superior to public management, very few studies examine the threat of privatization as a possible impetus in improving government performance and productivity. This study inspects the privatization literature to ascertain the plausibility of a link existing between the threat of privatization and improved government performance. Based on the literature, the study qualitatively supports the assertion that many public sector organizations that appear to be threatened by privatization seem to improve government performance and productivity.