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Utilities reforms and corruption in developing countries

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  • Estache, Antonio
  • Goicoechea, Ana
  • Trujillo, Lourdes

Abstract

This paper shows empirically that "privatization" in the energy, telecommunications, and water sectors, and the introduction of independent regulators in those sectors, have not always had the expected effects on access, affordability, or quality of services. It also shows that corruption leads to adjustments in the quantity, quality, and price of services consistent with the profit-maximizing behavior that one would expect from monopolies in the sector. Finally, our results suggest that privatization and the introduction of independent regulators have, at best, only partial effects on the consequences of corruption for access, affordability, and quality of utilities services.

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Bibliographic Info

Article provided by Elsevier in its journal Utilities Policy.

Volume (Year): 17 (2009)
Issue (Month): 2 (June)
Pages: 191-202

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Handle: RePEc:eee:juipol:v:17:y:2009:i:2:p:191-202

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Web page: http://www.elsevier.com/locate/inca/30478

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Keywords: Corruption Privatization Regulation Utilities;

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References

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Citations

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Cited by:
  1. Hulya Dagdeviren & Simon A. Robertson, 2009. "Access to Water in the Slums of the Developing World," Working Papers 57, International Policy Centre for Inclusive Growth.
  2. Berg, Sanford V. & Jiang, Liangliang & Lin, Chen, 2012. "Regulation and corporate corruption: New evidence from the telecom sector," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 22-43.
  3. Liam Wren-Lewis, 2011. "Do infrastructure reforms reduce the effect of corruption? Theory and evidence from Latin America and the Caribbean," Economics Series Working Papers 576, University of Oxford, Department of Economics.
  4. Kenny, Charles, 2009. "Is there an anticorruption agenda in utilities?," Utilities Policy, Elsevier, vol. 17(2), pages 156-165, June.
  5. Guasch, J. Luis & Straub, Stphane, 2009. "Corruption and concession renegotiations.: Evidence from the water and transport sectors in Latin America," Utilities Policy, Elsevier, vol. 17(2), pages 185-190, June.
  6. Kenny, Charles, 2006. "Measuring and reducing the impact of corruption in infrastructure," Policy Research Working Paper Series 4099, The World Bank.
  7. Roxas, Fernando & Santiago, Andrea, 2010. "Broken dreams: Unmet expectations of investors in the Philippine electricity restructuring and privatization," Energy Policy, Elsevier, vol. 38(11), pages 7269-7277, November.
  8. Estache, Antonio & Wren-Lewis, Liam, 2010. "What Anti-Corruption Policy Can Learn from Theories of Sector Regulation," CEPR Discussion Papers 8082, C.E.P.R. Discussion Papers.
  9. Antonio Estache & L. Wren-Lewis, 2008. "Towards a Theory of Regulation for Developing Countries: Following Laffont's Lead," Working Papers ECARES 2008_018, ULB -- Universite Libre de Bruxelles.
  10. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2012. "The Costs of Corruption in the Italian Solid Waste Industry," Carlo Alberto Notebooks 275, Collegio Carlo Alberto.
  11. Seim, Line Tndel & Sreide, Tina, 2009. "Bureaucratic complexity and impacts of corruption in utilities," Utilities Policy, Elsevier, vol. 17(2), pages 176-184, June.

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