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

Jinjin Zhao ()
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Jinjin Zhao: Zhejiang University of Finance and Economics

Journal of Productivity Analysis, 2020, vol. 53, issue 2, No 4, 227-241

Abstract: 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.

Keywords: Productivity change; Water sector; Parametric Generalized Malmquist Productivity Index; Stochastic frontier production function; L95; O47; D24 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s11123-019-00572-7

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