The effects of privatisation on the equity of public services: evidence from China

Abstract

This article investigates the relationship between privatisation and equity, and considers the extent to which measures to reverse privatisation have improved citizens’ access to public services. The Coefficient of Variation (CV) method is used to measure equity, and the multiple regression method is adopted to test the relationship between privatisation and equity. The findings confirm that there is a negative relationship between market access and equity, an inverted U-shape relationship between competition and equity, and a positive relationship between ownership and equity. In addition, the findings demonstrate that privatisation reversal does not have a clear impact on equity.