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Sector organization, governance, and the inefficiency of African water utilities

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  • Estache, Antonio
  • Kouassi, Eugene

Abstract

The authors analyze the determinants of the efficiency levels reached by twenty one African water utilities. They assess efficiency through the estimation of a production frontier for the sector in Africa. The efficiency estimates confirm much of the common perceptions from partial productivity indicators. They point to a great heterogeneity in the African water utilities'performances, the predominance of constant returns to scale, and the great rate of technological progress. And the authors show that the institutional capacity of the country, as well as its governance quality, are significant driving factors in the performance of each firm.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2890.

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Date of creation: 30 Sep 2002
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Handle: RePEc:wbk:wbrwps:2890

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Keywords: Water and Industry; Environmental Economics&Policies; Water Conservation; Decentralization; Health Economics&Finance; Town Water Supply and Sanitation; Environmental Economics&Policies; Water Supply and Sanitation Governance and Institutions; Water and Industry; Health Economics&Finance;

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  16. Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
  17. Taylor, William E., 1980. "Small sample considerations in estimation from panel data," Journal of Econometrics, Elsevier, vol. 13(2), pages 203-223, June.
  18. Simar, L., 1991. "Estimating efficiencies from frontier models with panel data: a comparison of parametric, non-parametric and semi-parametric methods with boot strapping," CORE Discussion Papers 1991026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  21. Baltagi, Badi H., 1985. "Pooling cross-sections with unequal time-series lengths," Economics Letters, Elsevier, vol. 18(2-3), pages 133-136.
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