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Sector organization, governance, and the inefficiency of African water utilities

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  • Estache, Antonio
  • Kouassi, Eugene

Abstract

The authors analyze the determinants of the efficiency levels reached by twenty one African water utilities. They assess efficiency through the estimation of a production frontier for the sector in Africa. The efficiency estimates confirm much of the common perceptions from partial productivity indicators. They point to a great heterogeneity in the African water utilities'performances, the predominance of constant returns to scale, and the great rate of technological progress. And the authors show that the institutional capacity of the country, as well as its governance quality, are significant driving factors in the performance of each firm.

Suggested Citation

  • Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2890
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Antonio Estache & Emili Grifell-Tatjé, 2010. "Assessing the impact of Mali's water privatization across stakeholders," Working Papers ECARES ECARES 2010-037, ULB -- Universite Libre de Bruxelles.
    2. Ruester, Sophia & Zschille, Michael, 2010. "The impact of governance structure on firm performance: An application to the German water distribution sector," Utilities Policy, Elsevier, vol. 18(3), pages 154-162, September.
    3. Shreekant Gupta & Surender Kumar & Gopal K. Sarangi, 2011. "Does Greater Autonomy Improve Performance? Evidence From Water Service Providers In Indian Cities," Working papers 205, Centre for Development Economics, Delhi School of Economics.
    4. Kirkpatrick, Colin & Parker, David & Zhang, Yin-Fang, 2004. "State versus Private Sector Provision of Water Services in Africa: A Statistical, DEA and Stochastic Cost Frontier Analysis," Centre on Regulation and Competition (CRC) Working papers 30604, University of Manchester, Institute for Development Policy and Management (IDPM).
    5. Estache, Antonio & Goicoechea, Ana & Trujillo, Lourdes, 2009. "Utilities reforms and corruption in developing countries," Utilities Policy, Elsevier, vol. 17(2), pages 191-202, June.
    6. Thierry Buchs, 2005. "Privatization in Sub-Saharan Africa: Some Lessons from Experiences to Date," Microeconomics 0502007, EconWPA.
    7. Mande Buafua, Patrick, 2015. "Efficiency of urban water supply in Sub-Saharan Africa: Do organization and regulation matter?," Utilities Policy, Elsevier, vol. 37(C), pages 13-22.
    8. Jalilian, Hossein & Kirkpatrick, Colin & Parker, David, 2003. "Creating the Conditions for International Business Expansion: The Impact of Regulation on Economic Growth in Developing Countries - A Cross-Country Analysis," Centre on Regulation and Competition (CRC) Working papers 30689, University of Manchester, Institute for Development Policy and Management (IDPM).
    9. Lee, Cassey, 2011. "Privatization, water access and affordability: Evidence from Malaysian household expenditure data," Economic Modelling, Elsevier, vol. 28(5), pages 2121-2128, September.
    10. Mugisha, Silver, 2007. "Effects of incentive applications on technical efficiencies: Empirical evidence from Ugandan water utilities," Utilities Policy, Elsevier, vol. 15(4), pages 225-233, December.
    11. Chen Lin & Sanford Berg, 2008. "Incorporating Service Quality into Yardstick Regulation: An Application to the Peru Water Sector," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(1), pages 53-75, February.
    12. Estache, Antonio & Wren-Lewis, Liam, 2010. "What Anti-Corruption Policy Can Learn from Theories of Sector Regulation," CEPR Discussion Papers 8082, C.E.P.R. Discussion Papers.
    13. Wang, Hongwei & Wu, Wenqing & Zheng, Shilin, 2011. "An econometric analysis of private sector participation in China’s urban water supply," Utilities Policy, Elsevier, vol. 19(3), pages 134-141.
    14. David Parker & Colin Kirkpatrick, 2005. "Privatisation in Developing Countries: A Review of the Evidence and the Policy Lessons," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 513-541.
    15. repec:tur:wpapnw:4 is not listed on IDEAS
    16. repec:cbu:jrnlec:y:2017:v:4:p:179-185 is not listed on IDEAS
    17. Cuadrado-Ballesteros, Beatriz & García-Sánchez, Isabel-María & Prado-Lorenzo, José-Manuel, 2013. "Effect of modes of public services delivery on the efficiency of local governments: A two-stage approach," Utilities Policy, Elsevier, vol. 26(C), pages 23-35.
    18. George R.G. Clarke & Katrina Kosec & Scott Wallsten, 2009. "Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 327-361.
    19. Kate Bayliss, 2009. "Private Sector Participation in African Infrastructure: Is it Worth the Risk?," Working Papers 55, International Policy Centre for Inclusive Growth.
    20. Kirkpatrick, Colin & Parker, David, 2004. "Regulation and the Privatisation of Water Services in Developing Countries: Assessing the Impact of the General Agreement on Trade in Services (GATS)," Centre on Regulation and Competition (CRC) Working papers 30600, University of Manchester, Institute for Development Policy and Management (IDPM).

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