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Productivity development and privatisation of the potable water and sewage sector in Chile

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Abstract

The aim of this study is to investigate the effect of privatisation on productivity development in the Chilean potable water and sewage sector. We have access to high quality firm level data making it possible to study the effects on a firm level. Productivity development is studied by means of a Malmquist productivity index. Total productivity is divided into efficiency change and technical change. These three components are then analysed against privatisation with the use of a non-parametric Mann-Whitney test. The main result is that we do not find any significant effects of privatisation on productivity development.

Suggested Citation

  • Månsson, Jonas & Salas, Osvaldo, 2006. "Productivity development and privatisation of the potable water and sewage sector in Chile," CAFO Working Papers 2006:5, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
  • Handle: RePEc:hhs:vxcafo:2006_005
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    1. Antonio Estache & MartÌn A. Rossi, 2002. "How Different Is the Efficiency of Public and Private Water Companies in Asia?," World Bank Economic Review, World Bank Group, vol. 16(1), pages 139-148, June.
    2. C. Lovell, 2003. "The Decomposition of Malmquist Productivity Indexes," Journal of Productivity Analysis, Springer, vol. 20(3), pages 437-458, November.
    3. Abdullah Al-Obaidan, 2002. "Efficiency effect of privatization in the developing countries," Applied Economics, Taylor & Francis Journals, vol. 34(1), pages 111-117.
    4. Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2001. "Utilities Privatization and the Poor: Lessons and Evidence from Latin America," World Development, Elsevier, vol. 29(7), pages 1179-1198, July.
    5. Saal, David S & Parker, David, 2001. "Productivity and Price Performance in the Privatized Water and Sewerage Companies of England and Wales," Journal of Regulatory Economics, Springer, vol. 20(1), pages 61-90, July.
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    More about this item

    Keywords

    Privatisation; Productivity development;

    JEL classification:

    • D29 - Microeconomics - - Production and Organizations - - - Other
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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