Advanced Search
MyIDEAS: Login to save this article or follow this journal

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

Contents:

Author Info

  • 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.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6W5X-4FK3PDT-2/2/c1e81f1672f9ea0f9866e5a2dc05b9c6
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

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

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

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620167

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Toru Hattori, 2002. "Relative Performance of U.S. and Japanese Electricity Distribution: An Application of Stochastic Frontier Analysis," Journal of Productivity Analysis, Springer, vol. 18(3), pages 269-284, November.
  2. David M. Newbery, 2002. "Privatization, Restructuring, and Regulation of Network Utilities," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640481, December.
  3. repec:reg:rpubli:124 is not listed on IDEAS
  4. Rodrigo Gutierrez & Pablo Serra & Ronald Fischer, 2003. "The Effects of Privatization on Firms and on Social Welfare: The Chilean Case," Research Department Publications 3150, Inter-American Development Bank, Research Department.
  5. Dewatripont, M & Roland, G, 1992. "Economic Reform and Dynamic Political Constraints," Review of Economic Studies, Wiley Blackwell, vol. 59(4), pages 703-30, October.
  6. Gutierrez, Luis H. & Berg, Sanford, 2000. "Telecommunications liberalization and regulatory governance: lessons from Latin America," Telecommunications Policy, Elsevier, vol. 24(10-11), pages 865-884, November.
  7. Schmitz, Patrick W., 2001. "The Hold-Up Problem and Incomplete Contracts: A Survey of Recent Topics in Contract Theory," MPRA Paper 12562, University Library of Munich, Germany.
  8. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
  9. Li, Wei & Xu, Lixin Colin, 2002. "The Political Economy of Privatization and Competition: Cross-Country Evidence from the Telecommunications Sector," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 439-462, September.
  10. Roland, Gérard, 1994. "On the Speed and Sequencing of Privatization and Restructuring," CEPR Discussion Papers 942, C.E.P.R. Discussion Papers.
  11. Antonio Estache & Martin Rossi & Christian Ruzzier, 2004. "The Case for International Coordination of Electricity Regulation: Evidence from the Measurement of Efficiency in South America," ULB Institutional Repository 2013/43975, ULB -- Universite Libre de Bruxelles.
  12. Reiner Martin & Isabel Vansteenkiste, 2001. "EU telecommunications and electricity markets—Heading towards price convergence?," Intereconomics: Review of European Economic Policy, Springer, vol. 36(3), pages 131-140, May.
  13. Wallsten, Scott & Clarke, George & Haggarty, Luke & Kaneshiro, Rosario & Noll, Roger & Shirley, Mary & Lixin Colin Xu, 2004. "New tools for studying network industry reforms in developing countries : the telecommunications and electricity regulation database," Policy Research Working Paper Series 3286, The World Bank.
  14. Ronald Fischer & Rodrigo Gutiérrez & Pablo Serra, 2002. "The Effects of Privatization on Firms and on Social Welfare," Documentos de Trabajo 131, Centro de Economía Aplicada, Universidad de Chile.
  15. Jililian, Hossein & Kirkpatrick, Colin & Parker, David, 2003. "Creating the Conditions for International Business Expansion: The Impact of Regulation on Economic Growth in Developing Countries - A Cross-Country Analysis," Development Economics and Public Policy Working Papers 30554, University of Manchester, Institute for Development Policy and Management (IDPM).
  16. R. Peter Lalor & Hernán García, 1996. "Reshaping Power Markets-Lessons from Chile and Argentina," World Bank Other Operational Studies 11617, The World Bank.
  17. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications, The World Bank, number 15024, July.
  18. Andrew N. Kleit & Dek Terrell, 2001. "Measuring Potential Efficiency Gains From Deregulation Of Electricity Generation: A Bayesian Approach," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 523-530, August.
  19. David Parker & Colin Kirkpatrick, 2005. "Privatisation in Developing Countries: A Review of the Evidence and the Policy Lessons," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 513-541.
  20. repec:reg:wpaper:527 is not listed on IDEAS
  21. Newbery, David M., 1991. "Reform in Hungary : Sequencing and privatisation," European Economic Review, Elsevier, vol. 35(2-3), pages 571-580, April.
  22. Preetum Domah & Pollitt, M.G. & Jon Stern, 2002. "Modelling the Costs of Electricity Regulation: Evidence of Human Resource Constraints in Developing Countries," Cambridge Working Papers in Economics 0229, Faculty of Economics, University of Cambridge.
  23. Gutierrez, Luis Hernando, 2003. "The Effect of Endogenous Regulation on Telecommunications Expansion and Efficiency in Latin America," Journal of Regulatory Economics, Springer, vol. 23(3), pages 257-86, May.
  24. Galal, Ahmed & Nauriyal, Bharat, 1995. "Regulating telecommunications in developing countries : outcomes, incentives, and commitment," Policy Research Working Paper Series 1520, The World Bank.
  25. Estache, Antonio & Guasch, Jose-Luis & Trujillo, Lourdes, 2003. "Price caps, efficiency payoffs, and infrastructure contract renegotiation in Latin America," Policy Research Working Paper Series 3129, The World Bank.
  26. Luis Gutierrez, 2002. "Regulatory governance in the latinamerican telecommunications sector," BORRADORES DE INVESTIGACIÓN 003447, UNIVERSIDAD DEL ROSARIO.
  27. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
  28. D. Parker, 2002. "Economic Regulation: a review of issues," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 73(4), pages 493-519, December.
  29. Plane, Patrick, 1999. "Privatization, Technical Efficiency and Welfare Consequences: The Case of the Cote d'Ivoire Electricity Company (CIE)," World Development, Elsevier, vol. 27(2), pages 343-360, February.
  30. Faye Steiner, 2000. "Regulation, Industry Structure and Performance in the Electricity Supply Industry," OECD Economics Department Working Papers 238, OECD Publishing.
  31. Paul L. Joskow, 1998. "Electricity Sectors in Transition," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 25-52.
  32. Wallsten, Scott J, 2001. "An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 1-19, March.
  33. Sharkey,William W., 1983. "The Theory of Natural Monopoly," Cambridge Books, Cambridge University Press, number 9780521271943.
  34. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, December.
  35. Christian von Hirschhausen & Petra Opitz, 2001. "Power Utility Re-regulation in East European and CIS Transformation Countries (1990-1999): An Institutional Interpretation," Discussion Papers of DIW Berlin 246, DIW Berlin, German Institute for Economic Research.
  36. Torero, Maximo & Pasco-Font, Alberto, 2001. "The Social Impact of Privatization and the Regulation of Utilities in Peru," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  37. Eduardo Bitrán & Pablo Serra, 1998. "Regulation of Privatized Utilities: The Chilean Experience," Documentos de Trabajo 32, Centro de Economía Aplicada, Universidad de Chile.
  38. Arocena, Pablo & Waddams Price, Catherine, 2002. "Generating efficiency: economic and environmental regulation of public and private electricity generators in Spain," International Journal of Industrial Organization, Elsevier, vol. 20(1), pages 41-69, January.
  39. P. Cook, 1999. "Privatization and Utility Regulation in Developing Countries: the Lessons So Far," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 70(4), pages 549-587, December.
  40. repec:reg:wpaper:124 is not listed on IDEAS
  41. Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 421-52.
  42. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
  43. Ada Karina Izaguirre, 1998. "Private Participation in the Electricity Sector : Recent Trends," World Bank Other Operational Studies 11532, The World Bank.
  44. Wallsten, Scott, 2002. "Does sequencing matter? regulation and privatization in telecommunications reforms," Policy Research Working Paper Series 2817, The World Bank.
  45. I Grosfeld & P Hare, 1991. "Privatization in Hungary," CEP Discussion Papers dp0031, Centre for Economic Performance, LSE.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Zhang, Yin-Fang & Kirkpatrick, Colin & Parker, David, 2002. "Electricity Sector Reform in Developing Countries: An Econometric Assessment of the Effects of Privatisation, Competition and Regulation," Centre on Regulation and Competition (CRC) Working papers 30593, University of Manchester, Institute for Development Policy and Management (IDPM).
  2. Morgan Bazilian & Patrick Nussbaumer & Hans-Holger Rogner & Abeeku Brew-Hammond & Vivien Foster & Shonali Pachauri & Eric Williams & Mark Howells & Philippe Niyongabo & Lawrence Musaba & Brian Ó Gall, 2011. "Energy Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa," Working Papers 2011.68, Fondazione Eni Enrico Mattei.
  3. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: a cross country panel data analysis," MPRA Paper 28414, University Library of Munich, Germany.
  4. 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.
  5. 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, vol. 48(2), pages 177-188, May.
  6. 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).
  7. Antonio Estache & A. Goicoechea & Lourdes Trujillo, 2008. "Utilities reforms and corruption in developing countries," ULB Institutional Repository 2013/43908, ULB -- Universite Libre de Bruxelles.
  8. 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.
  9. 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.
  10. 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.
  11. Ornella Tarola, 2010. "Public Utilities: Privatization without Regulation," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 4(1), pages 062-078, March.
  12. David Parker & Colin Kirkpatrick, 2005. "Privatisation in Developing Countries: A Review of the Evidence and the Policy Lessons," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 513-541.
  13. 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.
  14. 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.
  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. 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.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:quaeco:v:45:y:2005:i:2-3:p:358-379. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.