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Productivity change in the privatized water sector in China (1999–2006)

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  • Jinjin Zhao

    (Zhejiang University of Finance and Economics)

Abstract

We estimate the effects of the Chinese water sector’s privatization reforms based on firm-level panel data from 1999 to 2006. By applying a translog stochastic frontier production function and a Parametric Generalized Malmquist Productivity Index, we find that the privatization reforms and the participation of multinational water firms contributed to the performance improvement of the Chinese water sector. The foreign-owned water firms stood at the sector’s productivity frontier and the domestic privately-owned water firms were close to the frontier. However, state-owned water firms had the lowest technical efficiency scores, though they improved modestly over time.

Suggested Citation

  • Jinjin Zhao, 2020. "Productivity change in the privatized water sector in China (1999–2006)," Journal of Productivity Analysis, Springer, vol. 53(2), pages 227-241, April.
    • Handle: RePEc:kap:jproda:v:53:y:2020:i:2:d:10.1007_s11123-019-00572-7
    DOI: 10.1007/s11123-019-00572-7
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