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Utilities reforms and corruption in developing countries

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Author Info
Estache, Antonio
Goicoechea, Ana
Trujillo, Lourdes

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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 behavior that one would expect from monopolies in the sector. The 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 utility services.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4081.

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Date of creation: 01 Dec 2006
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Handle: RePEc:wbk:wbrwps:4081

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Related research
Keywords: Infrastructure Regulation; Energy Production and Transportation; Town Water Supply and Sanitation; Social Accountability; ICT Policy and Strategies;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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. 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!]
  3. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank. [Downloadable!]
    Other versions:
  4. 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)
  5. 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)
  6. 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.
  7. 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)
  8. 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)
  9. 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.
  10. 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)
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  11. 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!]
  12. 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)
  13. Olivier Boylaud & Giuseppe Nicoletti, 2000. "Regulation, Market Structure and Performance in Telecommunications," OECD Economics Department Working Papers 237, OECD, Economics Department. [Downloadable!]
  14. 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)
  15. 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)
  16. 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!]
  17. 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)
    Other versions:
  18. Andrei Shleifer & Robert W. Vishny, 1993. "Corruption," NBER Working Papers 4372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  19. 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!]
  20. 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)
  21. 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)
  22. 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!]
  23. 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)
  24. 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!]
    Other versions:
  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!]
    Other versions:
  26. Shapiro, C. & Willing, D.R., 1990. "Economic Rationales For The Scope Of Privatization," Papers 41, Princeton, Woodrow Wilson School - Discussion Paper.
Full references

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. 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. [Downloadable!]
  2. 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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