Scandinavian Working Papers in Economics

CAFO Working Papers,
Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics

No 2006:5: Productivity development and privatisation of the potable water and sewage sector in Chile

Jonas Månsson () and Osvaldo Salas ()
Additional contact information
Jonas Månsson: Centre for Labour Market Policy Research (CAFO), Postal: Centre for Labour Market Policy Research (CAFO), Dept of Economics and Statistics, School of Management and Economics, Växjö University , SE 351 95 Växjö, Sweden
Osvaldo Salas: Centre for Labour Market Policy Research (CAFO), Postal: Centre for Labour Market Policy Research (CAFO), Dept of Economics and Statistics, School of Management and Economics, Växjö University , SE 351 95 Växjö, Sweden

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.

Keywords: Privatisation; Productivity development

JEL-codes: D29; L33

22 pages, February 4, 2006

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