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Utilities reforms and corruption in developing countries

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Author Info
Antonio Estache
Ana Goicoechea
Lourdes Trujillo () (Department of Economics, City University, London and DAEA, Universidad de Las Palmas de Gran Canaria)

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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 behaviour 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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Paper provided by Department of Economics, City University, London in its series City University Economics Discussion Papers with number 07/07.

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Length: 30 pages
Date of creation: Apr 2007
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Handle: RePEc:cty:dpaper:0707

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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.:
  1. Hattori, Toru & Tsutsui, Miki, 2004. "Economic impact of regulatory reforms in the electricity supply industry: a panel data analysis for OECD countries," Energy Policy, Elsevier, vol. 32(6), pages 823-832, April. [Downloadable!] (restricted)
  2. Rock, Michael T. & Bonnett, Heidi, 2004. "The Comparative Politics of Corruption: Accounting for the East Asian Paradox in Empirical Studies of Corruption, Growth and Investment," World Development, Elsevier, vol. 32(6), pages 999-1017, June. [Downloadable!] (restricted)
  3. Wallsten, Scott J, 2001. "An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America," Journal of Industrial Economics, Blackwell Publishing, vol. 49(1), pages 1-19, March. [Downloadable!] (restricted)
  4. John Cubbin & Jon Stern, 2004. "Regulatory effectiveness: The impact of good regulatory governance on electricity Industry capacity and efficiency in developing countries," City University Economics Discussion Papers 04/04, Department of Economics, City University, London. [Downloadable!]
  5. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank. [Downloadable!]
  6. Scott Wallsten, 2003. "Of Carts and Horses: Regulation and Privatization in Telecommunications Reforms," Journal of Policy Reform, Taylor and Francis Journals, vol. 6(4), pages 217-231, January. [Downloadable!] (restricted)
  7. Estache, Antonio & Rossi, Martin A., 2005. "Do regulation and ownership drive the efficiency of electricity distribution? Evidence from Latin America," Economics Letters, Elsevier, vol. 86(2), pages 253-257, February. [Downloadable!] (restricted)
  8. John Cubbin & Jon Stern, 2006. "The Impact of Regulatory Governance and Privatization on Electricity Industry Generation Capacity in Developing Economies," World Bank Economic Review, Oxford University Press, vol. 20(1), pages 115-141.
  9. Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W, 1996. "A Theory of Privatisation," Economic Journal, Royal Economic Society, vol. 106(435), pages 309-19, March. [Downloadable!] (restricted)
  10. Agustin J. Ros, 2003. "The Impact of the Regulatory Process and Price Cap Regulation in Latin American Telecommunications Markets," Review of Network Economics, Concept Economics, vol. 2(3), pages 270-286, September. [Downloadable!]
  11. Mendez, Fabio & Sepulveda, Facundo, 2006. "Corruption, growth and political regimes: Cross country evidence," European Journal of Political Economy, Elsevier, vol. 22(1), pages 82-98, March. [Downloadable!] (restricted)
  12. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2002. "An assessment of telecommunications reform in developing countries," Policy Research Working Paper Series 2909, The World Bank. [Downloadable!]
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  13. 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. [Downloadable!] (restricted)
  14. Li, Wei & Xu, Lixin Colin, 2004. "The Impact of Privatization and Competition in the Telecommunications Sector around the World," Journal of Law & Economics, University of Chicago Press, vol. 47(2), pages 395-430, October.
  15. 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. [Downloadable!] (restricted)
  16. Kariuki, Mukami & Schwartz, Jordan, 2005. "Small-scale private service providers of water supply and electricity : a review of incidence, structure, pricing, and operating characteristics," Policy Research Working Paper Series 3727, The World Bank. [Downloadable!]
  17. Lorenzo Pellegrini & Reyer Gerlagh, 2004. "Corruption's Effect on Growth and its Transmission Channels," Kyklos, Blackwell Publishing, vol. 57(3), pages 429-456, 08. [Downloadable!] (restricted)
  18. Olivier Boylaud & Giuseppe Nicoletti, 2000. "Regulation, Market Structure and Performance in Telecommunications," OECD Economics Department Working Papers 237, OECD Economics Department. [Downloadable!]
  19. Ros, Agustin J, 1999. "Does Ownership or Competition Matter? The Effects of Telecommunications Reform on Network Expansion and Efficiency," Journal of Regulatory Economics, Springer, vol. 15(1), pages 65-92, January. [Downloadable!] (restricted)
  20. Vagliasindi, Maria, 2004. "The role of investment and regulatory reforms in the development of infrastructure across transition economies," Utilities Policy, Elsevier, vol. 12(4), pages 303-314, December. [Downloadable!] (restricted)
  21. Clarke, George R. G. & Lixin Colin Xu, 2002. "Ownership, competition, and corruption : bribe takers versus bribe payers," Policy Research Working Paper Series 2783, The World Bank. [Downloadable!]
  22. 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. [Downloadable!] (restricted)
  23. Shleifer, Andrei & Vishny, Robert W, 1993. "Corruption," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 599-617, August. [Downloadable!] (restricted)
    Other versions:
    • Andrei Shleifer & Robert W. Vishny, 1993. "Corruption," NBER Working Papers 4372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  24. Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank. [Downloadable!]
  25. Clarke, George R. G. & Kosec, Katrina & Wallsten, Scott, 2004. "Has private participation in water and sewerage improved coverage? - empirical evidence from Latin America," Policy Research Working Paper Series 3445, The World Bank. [Downloadable!]
  26. Shapiro, C. & Willing, D.R., 1990. "Economic Rationales For The Scope Of Privatization," Papers 41, Princeton, Woodrow Wilson School - Discussion Paper.
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Cited by:
(explanations, 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.)

  1. Kenny, Charles, 2006. "Measuring and reducing the impact of corruption in infrastructure," Policy Research Working Paper Series 4099, The World Bank. [Downloadable!]
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