Planning and Budgeting

Privatization has been one of the most important aspects of the economic transition from a Centralized economy to a market economy In order to have maximum productivity. Theoretical arguments and empirical evidence suggests an effective performance incentive mechanism and corporate governance, and increase their productivity if the lack of government interference. In this study, after identifying privatization purpose in Iran, we By using value- added productivity model, evaluate Total productivity, production resource productivity (Labor، material، capital) and performance productivity (Sales/employment، profit /employment ) effects associated with privatization of state-owned enterprises, in five year’s pre and post privatization. The results show, privatization of state-owned enterprises from 1994 to 2011 through stock exchange, dosn’t not increased total productivity. Also, from the resource productivity approach, privatization, increases the labor productivity but don’t increase materials and capital productivity. From the performance productivity approach, only increase Sales/employment and doesn’t increase profit /employment. Keywords: privatization, productivity, By privatization enterprises, value- added productivity model.