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THE WORLD BANK ECONOMIC REVIEW, VOL. 16, NO. 1, 139-148
© 2002 International Bank for Reconstruction and Development / The World Bank

Article

How Different Is the Efficiency of Public and Private Water Companies in Asia?

Antonio Estache and Martín A. Rossi

Antonio Estache is with the World Bank Institute, Governance, Regulation, and Finance Division and the European Center for Applied Research in Economics and Statistics, Brussels. His e-mail address is aestache{at}worldbank.org.
Martín A. Rossi is with Universidad Argentina de la Empresa, Economic Regulation Research Centre, Department of Economics, Buenos Aires, and the University of Oxford, Linacre College. His e-mail address is martin.rossi{at}linacre.ox.ac.uk.

Abstract

Several studies have compared the efficiency of publicly and privately owned water utilities and reached conflicting conclusions on the impact of ownership on efficiency. This article provides further evidence by estimating a stochastic cost frontier for a sample of Asian and Pacific regional water companies. The results show that efficiency is not significantly different in private companies than in public ones.


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