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Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa

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  • Imam, M.
  • Jamasb, T.
  • Llorca, M.
  • Llorca, M.

Abstract

We analyse the impact of corruption and two key aspects of electricity sector reforms, such as the creation of independent regulatory agencies and private sector participation, on several performance indicators in Sub-Saharan Africa. We find that corruption reduces technical efficiency of the sector and constrains the efforts to increase access to electricity and national income. However, some negative effects are offset where independent regulators are established and privatisation is implemented. Our findings suggest that well-designed reforms not only boost economic performance of the sector, but also reduce the negative effects of macro-level institutional deficiencies, such as corruption, on performance indicators.

Suggested Citation

  • Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1801
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    More about this item

    Keywords

    Panel data; dynamic GMM; electricity sector reform; corruption; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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