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Privatisation in Developing Countries: A Review of the Evidence and the Policy Lessons

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  • David Parker
  • Colin Kirkpatrick

Abstract

Privatisation is widely promoted as a means of improving economic performance in developing countries. However, the policy remains controversial and the relative roles of ownership and other structural changes, such as competition and regulation, in promoting economic performance remain uncertain. This article reviews the main empirical evidence on the impact of privatisation on economic performance in developing economies. The evidence suggests that if privatisation is to improve performance over the longer term, it needs to be complemented by policies that promote competition and effective state regulation, and that privatisation works best in developing countries when it is integrated into a broader process of structural reform.

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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Journal of Development Studies.

Volume (Year): 41 (2005)
Issue (Month): 4 ()
Pages: 513-541

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Handle: RePEc:taf:jdevst:v:41:y:2005:i:4:p:513-541

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Citations

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Cited by:
  1. Mbuvi, Dorcas & Tarsim, Achraf, 2011. "Managerial ownership and urban water utilities efficiency in Uganda," UNU-MERIT Working Paper Series 036, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  2. Zhang, Yinfang & Parker, David & Kirkpatrick, Colin, 2005. "Competition, regulation and privatisation of electricity generation in developing countries: does the sequencing of the reforms matter?," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 358-379, May.
  3. Hulya Dagdeviren, 2006. "Revisiting privatization in the context of poverty alleviation: the case of Sudan," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 469-488.
  4. Silvestre, Bruno & Hall, Jeremy & Matos, Stelvia & Figueira, Luiz Augusto, 2010. "Privatization of electricity distribution in the Northeast of Brazil: The good, the bad, the ugly or the naïve?," Energy Policy, Elsevier, vol. 38(11), pages 7001-7013, November.
  5. Kirkpatrick, Colin & Parker, David & Zhang, Yin-Fang, 2004. "Foreign Direct Investment in Infrastructure in Developing Countries: Does Regulation Make a Difference?," Centre on Regulation and Competition (CRC) Working papers 30703, University of Manchester, Institute for Development Policy and Management (IDPM).
  6. Kirkpatrick, Colin & Parker, David & Zhang, Yin-Fang, 2004. "Price and Profit Regulation in Developing and Transition Economies, Methods Used and Problems Faced: A Survey of the Regulators," Centre on Regulation and Competition (CRC) Working papers 30596, University of Manchester, Institute for Development Policy and Management (IDPM).
  7. Cook, Paul & Uchida, Yuichiro, 2004. "An Appraisal of the Performance of Privatized Enterprises in Developing Countries," Centre on Regulation and Competition (CRC) Working papers 30657, University of Manchester, Institute for Development Policy and Management (IDPM).
  8. Liam Wren-Lewis, 2011. "Do Infrastructure Reforms Reduce the Effect of Corruption? Theory and Evidence from Latin America and the Caribbean," Working Papers ECARES ECARES 2011-026, ULB -- Universite Libre de Bruxelles.
  9. Kirkpatrick, Colin & Parker, David, 2004. "Regulation and the Privatisation of Water Services in Developing Countries: Assessing the Impact of the General Agreement on Trade in Services (GATS)," Centre on Regulation and Competition (CRC) Working papers 30600, University of Manchester, Institute for Development Policy and Management (IDPM).
  10. 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.
  11. Philippe Marin, 2009. "Public-Private Partnerships for Urban Water Utilities : A Review of Experiences in Developing Countries," World Bank Publications, The World Bank, number 2703, 5.
  12. Parker, David & Kirkpatrick, Colin & Figueira-Theodorakopoulou, Catarina, 2005. "Infrastructure Regulation and Poverty Reduction in Developing Countries: A Review of the Evidence and a Research Agenda," Centre on Regulation and Competition (CRC) Working papers 30608, University of Manchester, Institute for Development Policy and Management (IDPM).
  13. Kirkpatrick, Colin & Parker, David & Zhang, Yin-Fang, 2004. "State versus Private Sector Provision of Water Services in Africa: A Statistical, DEA and Stochastic Cost Frontier Analysis," Centre on Regulation and Competition (CRC) Working papers 30604, University of Manchester, Institute for Development Policy and Management (IDPM).
  14. 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.
  15. Eyyuboglu, E. Mustafa, 2006. "Effects of privatization: A case study from Cayirhan coal district, Turkey," Energy Policy, Elsevier, vol. 34(17), pages 3017-3026, November.

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