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Privatization, Technical Efficiency and Welfare Consequences: The Case of the Côte d'Ivoire Electricity Company (CIE)

Patrick Plane ()
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Patrick Plane: Centre d'Etudes et de Recherches sur le Développement International(CERDI)

No 199828, Working Papers from CERDI

Abstract: In 1990, Côte d'Ivoire privatized the management of its electric power company (lease contracting). In this paper, we are interested in identifying the economic effect of this institutional change. By estimating a stochastic production frontier, we have found that productive efficiency improved after privatization thanks to organizational innovations. Total factor productivity gains have been closely associated with a cost-reduction strategy. The way these gains have been distributed in a monopoly context suggests that consumers have been the main beneficiaries through a significant decrease of the relative price of electricity.

Pages: 18
Date: 1998
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Published in , 1998, pages 1-43

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Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:96

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