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Infrastructure performance and reform in developing and transition economies: evidence from a survey of productivity measures

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  • Estache, Antonio
  • Perelman, Sergio
  • Trujillo, Lourdes

Abstract

The authors review about 80 studies on electricity and gas, water and sanitation, and rail and ports (with a footnote on telecommunications) in developing countries. The main policy lesson is that there is a difference in the relevance of ownership for efficiency between utilities and transport in developing countries. In transport, private operators have tended to perform better than public operators. For utilities, ownership often does not matter as much as sometimes argued. Most cross-country studies find no statistically significant difference in efficiency scores between public and private providers. As for the country-specific studies, some do find differences in performance over time but these differences tend to matter much less than a large number of other variables. Across sectors, private operators functioning in a competitive environment or regulated under price caps or hybrid regulatory regimes tend to catch up best practice faster than public operators. There is a very strong case to push regulators in developing and transition economies toward a more systematic reliance on yardstick competition in a sector in which residual monopoly powers tend to be common.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3514.

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Date of creation: 01 Feb 2005
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Handle: RePEc:wbk:wbrwps:3514

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Related research

Keywords: Enterprise Development&Reform; Labor Policies; Banks&Banking Reform; Environmental Economics&Policies; Economic Theory&Research; Environmental Economics&Policies; Economic Theory&Research; Banks&Banking Reform; Health Monitoring&Evaluation; Health Economics&Finance;

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References

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  1. Tupper, Henrique Cesar & Resende, Marcelo, 2004. "Efficiency and regulatory issues in the Brazilian water and sewage sector: an empirical study," Utilities Policy, Elsevier, vol. 12(1), pages 29-40, March.
  2. Rodríguez Pardina, Martín A. & Rossi, Martín, 2000. "Technical Change and Catching-up: The Electricity Distribution Sector in South America," UADE Working Papers 11_2000, Instituto de Economía, Universidad Argentina de la Empresa.
  3. Massimo Filippini & Nevenka Hrovatin & Jelena Zoric, 2002. "Efficiency and Regulation of the Slovenian Electricity Distribution Companies," CEPE Working paper series 02-14, CEPE Center for Energy Policy and Economics, ETH Zurich.
  4. Ligia Melo B. & Nestor Espinosa, . "Ineficiencia en la Distribución de Energía Eléctrica: Una Aplicación de las Funciones de Distancia Estocástica," Borradores de Economia 321, Banco de la Republica de Colombia.
  5. Bagdadioglu, Necmiddin & Waddams Price, Catherine M. & Weyman-Jones, Thomas G., 1996. "Efficiency and ownership in electricity distribution: A non-parametric model of the Turkish experience," Energy Economics, Elsevier, vol. 18(1-2), pages 1-23, April.
  6. Rodríguez Pardina, Martín & Rossi, Martín & Ruzzier, Christian, 1999. "Fronteras de eficiencia en el sector de distribución de energía eléctrica: la experiencia sudamericana," UADE Textos de Discusión 15_1999, Instituto de Economía, Universidad Argentina de la Empresa.
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Citations

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Cited by:
  1. NAUGES Céline & VAN DEN BERG Caroline, 2007. "How "natural" are natural monopolies in the water supply and sewerage sector? Case studies from developing and transition economies," LERNA Working Papers 07.05.226, LERNA, University of Toulouse.
  2. Caldeirinha, Vitor R. & Felicio, J. Augusto, 2011. "A influência dos factores de caracterização dos portos no desempenho, medido por indicadores operacionais, financeiros e de eficiência
    [The influence of factors characterizing the performance o
    ," MPRA Paper 30009, University Library of Munich, Germany.
  3. Estache, Antonio & Tovar, Beatriz & Trujillo, Lourdes, 2008. "How efficient are African electricity companies? Evidence from the Southern African countries," Energy Policy, Elsevier, vol. 36(6), pages 1969-1979, June.
  4. Céline Nauges & Caroline Berg, 2008. "Economies of density, scale and scope in the water supply and sewerage sector: a study of four developing and transition economies," Journal of Regulatory Economics, Springer, vol. 34(2), pages 144-163, October.
  5. Dethier, Jean-Jacques & Moore, Alexander, 2012. "Infrastructure in developing countries: An overview of some economic issues," Discussion Papers 123305, University of Bonn, Center for Development Research (ZEF).
  6. Lin, Chen, 2005. "Service quality and prospects for benchmarking: Evidence from the Peru water sector," Utilities Policy, Elsevier, vol. 13(3), pages 230-239, September.
  7. Chen Lin & Sanford Berg, 2008. "Incorporating Service Quality into Yardstick Regulation: An Application to the Peru Water Sector," Review of Industrial Organization, Springer, vol. 32(1), pages 53-75, February.
  8. Hulya Dagdeviren & Simon A. Robertson, 2009. "Access to Water in the Slums of the Developing World," Working Papers 57, International Policy Centre for Inclusive Growth.
  9. Vinnari, Eija M. & Hukka, Jarmo J., 2007. "Great expectations, tiny benefits - Decision-making in the privatization of Tallinn water," Utilities Policy, Elsevier, vol. 15(2), pages 78-85, June.
  10. Caldeirinha, V. M., 2011. "Size and specialization as determinant of iberian port performance: new methodology to group different ports," MPRA Paper 31957, University Library of Munich, Germany.
  11. Emmanuelle Auriol & Sara Biancini, 2012. "Powering Up Developing Countries through Integration?," CESifo Working Paper Series 3872, CESifo Group Munich.
  12. Seroa da Motta, Ronaldo & Moreira, Ajax, 2006. "Efficiency and regulation in the sanitation sector in Brazil," Utilities Policy, Elsevier, vol. 14(3), pages 185-195, September.
  13. Estache, A. & Tovar, B. & Trujillo, L., 2007. "Are African electricity distribution companies efficient? Evidence from southern African countries," Working Papers 07/13, Department of Economics, City University London.

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