Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Private Sector Participation and Performance of Urban Water Utilities in China

Bibliographic Data

ID4362575
AuthorsYi Jiang (0000-0001-6581-0950, Asian Development Bank Institute), Xiaoting Zheng (0000-0003-0456-2425)
Year2014
Volume63
Issue1
Pages155-189
Publication date2014-10-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/677739
OpenAlexW2019420309
LanguageEN
Citations received8
References cited23

In the early 1990s, China began opening its urban water sector to nonstate capital to meet increasing urban water demand. By 2007, more than 30% of large and medium urban water utilities had attracted private sector participation (PSP), of which two thirds have a majority of nonstate shareholders. To understand the factors that drive PSP in urban water supply and to answer the key policy question of how PSP has affected water utility performance, we assemble and analyze a unique data set consisting of 208 urban water utilities servicing more than 300 million urban residents from 1998 to 2007. We find that a utility’s profitability and liability level and a host city’s road infrastructure in the prior year play important roles in driving private investors both to enter and to withdraw from the sector. It is further found that PSP utilities, and mainly those with majority nonstate shareholders, have made substantial cost savings through employment downsizing and cutting managerial expenses, which leads to a remarkable profit increase. Other estimates, although statistically insignificant, show that PSP increases a utility’s investment and efficiency, and PSP cities have lower total and domestic water supply but more domestic water users

Business · China · Corporate governance · Economic growth · Economics · Geography · Microeconomics · Private sector · Profit (economics) · Profitability index · Shareholder · Water supply · Engineering · Environmental Engineering · Finance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Public-Private Partnership Projects

  • Valuing water purification services of forests

    Open Access•Zhaoyang Liu, HeQing Huang•Environment and Development…•2022

  • The Evolution of Private Provision in Urban Drinking Water

    Jeff Powell, Yuliya Yurchenko•New Political Economy•2019

  • Is privatization of sanitation services good for health

    Open Access•Carlos César Santejo Saiani, Paulo Furquim De Azevedo•Utilities Policy•2018

  • Sustainability disclosure and reporting by municipally owned water utilities

    Open Access•Lorenzo Ligorio, Fabio Caputo et al.•Utilities Policy•2022

  • Private ownership of water and wastewater systems

    Open Access•Rodrigo França Chaves, Adriano Borges Costa•Utilities Policy•2025

  • Privatization pathways in Brazilian water utilities

    Open Access•Carlos Motta Nunes, Rui Cunha Marques•Utilities Policy•2025

  • A review of global research on private investment in the water sector

    Open Access•Rajibur Reza, Gurudeo Anand Tularam et al.•Utilities Policy•2021

  • Urban land and sustainable resource use

    Open Access•Yan Wang, 妍 王•Land Use Policy•2020

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

    Antonio Estache•The World Bank Economic Review•2002

  • Privatisation in Developing Countries

    David Parker, Colin Kirkpatrick•The Journal of Development Studies•2005

  • Eat, Drink, Firms, Government

    Hongbin Cai, Hanming Fang et al.•The Journal of Law and Economics•2011

  • The Impact of Economic Reform on the Performance of Chinese State Enterprises, 1980–1989

    Wei Li•Journal of Political Economy•1997

  • Water for Life

    Sebastián Galiani, Paul Gertler et al.•Journal of Political Economy•2005

  • Competition and Corporate Performance

    Stephen Nickell, Stephen J Nickell•Journal of Political Economy•1996

  • Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers

    Douglas W Caves, Laurits R Christensen et al.•The Economic Journal•1982

  • State versus Private Ownership

    Open Access•Andrei Shleifer•The Journal of Economic…•1998

Unique citing works8
Citations per year1
Citation span2018 - 2025 (8)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 8

Tools

Open DOISci-Hub
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae