Private Ownership Structure and Firm Productivity: A Firm - Level Empirical Evidence from Nigeria

Abstract

Private-owned firms make up a large chunk of the firms existing in different countries of the world, especially Nigeria, and as such, contribute its quota to economic activities and growth of the economy. This study examined private ownership structure and firm productivity from the angle of firm - level empirical evidence from Nigeria using World Bank, Nigeria enterprise survey 2014 data and applied econometric model based on OLS technique. It was found among others by the study that a percentage increase in firms owned by private domestic individuals, companies or organizations (private domestic owned firms), would on the average have a significant positive impact on firm productivity in Nigeria by about 0.217276 units. In line with this, the study concludes that private domestic owned firms has positive significant impact on firm productivity in Nigeria. The study recommended among others that government should create more enabling/conducive business environment for private domestic firms to thrive and contribute more to overall economic growth and development. When this done, it will significantly increase employment, especially youth employment, reduce poverty and the menace of insecurity, increase per capita incomes, raise overall standard of the living of the people, and finally contribute significantly to economic growth and development of not only Nigeria, but Africa at large.