Long-run performance of an industry after broader reforms including privatization

Research on the impacts of broader reforms, including privatization on firms' long-run financial and operational performance, is extremely important but only occasionally performed. This study evaluates the long-run financial performance, total factor productivity, efficiency and technology of Pakistani cement manufacturing firms. We conclude that privatized firms have in fact achieved significant productivity growth in the long run due to technological progress compared to no growth in the pre-reform period. Interestingly, however, better productive performance has not contributed to long-run profitability and income efficiency gains, thereby casting serious doubt on the long-run financial benefits of reforms, including privatization.