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Competition, regulation and privatisation of electricity generation in developing countries: does the sequencing of the reforms matter?

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  • Zhang, Yinfang
  • Parker, David
  • Kirkpatrick, Colin

Abstract

Recent years have seen countries introducing reform of their utility industries with a view to promoting private ownership and competition. This paper studies the effect of the sequencing of privatisation, competition and regulation reforms in electricity generation using data from 25 developing countries for the period 1985 to 2001. A fixed effects panel data model is used. The study finds that establishing an independent regulatory authority and introducing competition before privatisation is correlated with higher electricity generation, higher generation capacity and, in the case of the sequence of competition before privatisation, improved capital utilisation.

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Bibliographic Info

Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

Volume (Year): 45 (2005)
Issue (Month): 2-3 (May)
Pages: 358-379

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Handle: RePEc:eee:quaeco:v:45:y:2005:i:2-3:p:358-379

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Web page: http://www.elsevier.com/locate/inca/620167

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Citations

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Cited by:
  1. Lestage, Romain & Flacher, David & Kim, Yeonbae & Kim, Jihwan & Kim, Yunhee, 2013. "Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms?," Information Economics and Policy, Elsevier, vol. 25(1), pages 41-50.
  2. Estache, Antonio & Goicoechea, Ana & Trujillo, Lourdes, 2006. "Utilities reforms and corruption in developing countries," Policy Research Working Paper Series 4081, The World Bank.
  3. Erdogdu, Erkan, 2010. "Electricity Market Reform: Lessons for developing countries," MPRA Paper 27317, University Library of Munich, Germany.
  4. Howard, Philip N. & Mazaheri, Nimah, 2009. "Telecommunications Reform, Internet Use and Mobile Phone Adoption in the Developing World," World Development, Elsevier, vol. 37(7), pages 1159-1169, July.
  5. Aitor Ciarreta, 2012. "Cartels and regulation: effects on prices and real sales in sweden (1976–1990)," European Journal of Law and Economics, Springer, vol. 34(1), pages 127-146, August.
  6. Nasrollahi Shahri, Nima, 2011. "Power market reforms and privatization of the electricity industry in the Iranian energy sector; an uphill struggle?," MPRA Paper 28047, University Library of Munich, Germany.
  7. Filippo Belloc & Antonio Nicita & Pier Luigi Parcu, 2011. "Deregulating Telecommunications in Europe: Timing, Path-Dependency, and Institutional Complementarities," RSCAS Working Papers 2011/47, European University Institute.
  8. Cambini, Carlo & Franzi, Donata, 2013. "Independent regulatory agencies and rules harmonization for the electricity sector and renewables in the Mediterranean region," Energy Policy, Elsevier, vol. 60(C), pages 179-191.
  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. Parker, David & Kirkpatrick, Colin & Figueira-Theodorakopoulou, Catarina, 2008. "Infrastructure regulation and poverty reduction in developing countries: A review of the evidence and a research agenda," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 48(2), pages 177-188, May.
  11. Ornella Tarola, 2010. "Public Utilities: Privatization without Regulation," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 4(1), pages 062-078, March.
  12. Ba, Lika & Gasmi, Farid, 2011. "To what extent do infrastructure and financial sectors reforms interplay? Evidence from panel data on the power sector in developing countries," TSE Working Papers 11-264, Toulouse School of Economics (TSE).
  13. Yin-Fang Zhang & David Parker & Colin Kirkpatrick, 2008. "Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation," Journal of Regulatory Economics, Springer, vol. 33(2), pages 159-178, April.
  14. Morgan Bazilian & Patrick Nussbaumer & Hans-Holger Rogner & Abeeku Brew-Hammond & Vivien Foster & Shonali Pachauri & Eric Williams & Mark Howells & Philippe Niyongabo & Lawrence Musaba & Brian Ó Galla, 2011. "Energy Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa," Working Papers 2011.68, Fondazione Eni Enrico Mattei.
  15. Ba, Lika & Gasmi, Farid, 2011. "To what extent do infrastructure and financial sectors reforms interplay? Evidence from panel data on the power sector in developing countries," IDEI Working Papers 692, Institut d'Économie Industrielle (IDEI), Toulouse.
  16. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
  17. Parker, David & Kirkpatrick, Colin, 2003. "Privatisation in Developing Countries: A Review of the Evidence and the Policy Lessons," Centre on Regulation and Competition (CRC) Working papers 30623, University of Manchester, Institute for Development Policy and Management (IDPM).

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