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Ownership Structure and Firm Performance in the Egyptian Manufacturing Sector

Author

Listed:
  • Ahmed Fayez Abdelgouad

    (Leuphana University Lueneburg)

  • Christian Pfeifer

    (Leuphana University Lueneburg)

  • John P. Weche Gelübcke

    (Leuphana University Lueneburg; Forschungsinstitut zur Zukunft der Arbeit (IZA), Germany)

Abstract
We use the World Bank enterprise survey for the Egyptian manufacturing sector to study the correlation between the ownership structure (private vs. public, Egyptian vs. Arab foreign vs. non-Arab foreign) and firm performance, which we measure as sales per worker, capacity utilization, and net profit rate. Our main findings indicate that (1) productivity differences between Egyptian private and public firms are not significant, but firms with public ownership have a lower capacity utilization and a lower net profit rate than private firms, (2) firms with private Arab and private non-Arab foreign ownership are significantly more productive and have a higher capacity utilization than purely Egyptian owned firms, and (3) differences between Arab and non-Arab foreign ownership are not significant for productivity and capacity utilization, but firms with non-Arab foreign ownership have a higher net profit rate than firms with Arab foreign or Egyptian owners.

Suggested Citation

  • Ahmed Fayez Abdelgouad & Christian Pfeifer & John P. Weche Gelübcke, 2014. "Ownership Structure and Firm Performance in the Egyptian Manufacturing Sector," Working Paper Series in Economics 328, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:328
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    References listed on IDEAS

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    Cited by:

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    2. Ahmed Fayez Abdelgouad, 2016. "Exporting and Workforce Skills-Intensity in the Egyptian Manufacturing Firms: Empirical Evidence Using World Bank Firm-Level Data for Egypt," Working Paper Series in Economics 358, University of Lüneburg, Institute of Economics.

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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F0 - International Economics - - General

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