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Impact of Private Sector Participation on access and quality of services: systematic review of evidence from the electricity, telecommunications and water supply sectors

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  • Prachitha John
  • Ashwin Mahalingam
  • Akash Deep
  • A. Thillairajan

Abstract

Individual studies on the impact of such Private Sector Participation (PSP) have yielded mixed results. This study synthesises evidence on the impact of PSP on access and quality outcomes. Studies to be included for the review were selected using well-defined inclusion, exclusion and quality appraisal criteria. Meta-regression analysis of 90 observations from 17 econometric studies was used to synthesise the evidences. Evidence on access was stronger as compared to that of quality. This indicated that PSP as a tool for improving quality of services has not been effective. Among the three sectors studied, telecom sector showed the strongest evidence of a true empirical effect between access and PSP, indicating that PSP has been an effective strategy to improve telecom access. In the case of electricity and water supply, the evidence indicated a positive and negative impact on access, respectively, though the effect was not significant. Overall, the results suggested that the effectiveness of PSP in improving access and quality in infrastructure services delivery has been limited and underlines the need for creating appropriate monitoring and incentive structures to make PSP interventions more effective in improving outcomes.

Suggested Citation

  • Prachitha John & Ashwin Mahalingam & Akash Deep & A. Thillairajan, 2015. "Impact of Private Sector Participation on access and quality of services: systematic review of evidence from the electricity, telecommunications and water supply sectors," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 7(1), pages 64-89, March.
    • Handle: RePEc:taf:jdevef:v:7:y:2015:i:1:p:64-89
    DOI: 10.1080/19439342.2014.955519
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    References listed on IDEAS

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    1. Apurva Sanghi & Alex Sundakov & Denzel Hankinson, 2007. "Designing and Using Public-Private Partnership Units in Infrastructure : Lessons from Case Studies Around the World," World Bank Publications - Reports 10644, The World Bank Group.
    2. Sanford V. Berg & Michael G. Pollitt (ed.), 2002. "Private Initiatives in Infrastructure," Books, Edward Elgar Publishing, number 2727.
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    Cited by:

    1. Minsoo Lee & Xuehui Han & Raymond Gaspar & Emmanuel Alano, 2018. "Deriving Macroeconomic Benefits from Public–Private Partnerships in Developing Asia," Working Papers id:12888, eSocialSciences.
    2. Lisa Bagnoli & Salvador Bertomeu-Sanchez & Antonio Estache & Maria Vagliasindi, 2023. "Does the ownership of utilities matter for social outcomes? A survey of the evidence for developing countries," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 26(1), pages 24-43, January.
    3. Antonio Estache, 2020. "Infrastructure “Privatization”: When Ideology Meets Evidence," Working Papers ECARES 2020-28, ULB -- Universite Libre de Bruxelles.
    4. Gunther Bensch, 2019. "The effects of market-based reforms on access to electricity in developing countries: a systematic review," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 11(2), pages 165-188, April.
    5. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache & Maria Vagliasindi, 2020. "Are the Poor Better Off with Public or Private Utilities ?A Survey of the Academic Evidence on Developing Economies," Working Papers ECARES 2020-24, ULB -- Universite Libre de Bruxelles.
    6. Cummins, Mark & Gillanders, Robert, 2020. "Greasing the Turbines? Corruption and access to electricity in Africa," Energy Policy, Elsevier, vol. 137(C).
    7. Lee, Minsoo & Han, Xuehui & Gaspar, Raymond & Alano, Emmanuel, 2018. "Deriving Macroeconomic Benefits from Public–Private Partnerships in Developing Asia," ADB Economics Working Paper Series 551, Asian Development Bank.

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