Costs of Infrastructure Deficiencies in Manufacturing in Indonesia, Nigeria, and Thailand

Costs of Infrastructure Deficiencies in Manufacturing in Indonesia, Nigeria, and Thailand
Author: Alex Anas
Publisher:
Total Pages:
Release: 1999
Genre:
ISBN:

May 1996 Using fresh results from a sample survey of manufacturing establishments in Indonesia and Thailand, the authors contrast and compare with data from an earlier study on Nigeria. They compare especially: the extent and incidence of public infrastructure deficiencies; the extent of manufacturers' private provision of infrastructure in response to such deficiencies; the capital shares of various private infrastructure investments, including electric power, water, telecommunications, transport, and waste disposal; and the firms' costs for producing their own electricity and water. The extent of public infrastructure deficiencies and private provision of infrastructure services varies across countries and by firm size. The total share of capital investment in private infrastructure was similar among Nigerian and Indonesian firms (14-16 percent) which is twice that in Thai firms. The private costs of infrastructure deficiencies are substantial and the burdens are much greater on small firms than on large firms.

Connecting Cities with Macroeconomic Concerns

Connecting Cities with Macroeconomic Concerns
Author: Mila Freire
Publisher: World Bank Publications
Total Pages: 140
Release: 2003-01-01
Genre: Business & Economics
ISBN: 9780821356739

Current economic thinking argues that the ability of cities to create wealth depends on agglomeration economies, relating to the geographic concentration of industries and people which interact to create enterprise, employment and growth. This book finds that the quality of local services significantly influences the productivity and economic development of a city and the ability of firms to contribute to wealth. The study is based on surveys conducted in five cities: Belo Horizonte in Brazil, Montreal in Canada, Puebla in Mexico, San Josâ in Costa Rica and San Salvador in El Salvador.

The Benefits of Alternative Power Tariffs for Nigeria and Indonesia

The Benefits of Alternative Power Tariffs for Nigeria and Indonesia
Author: Alex Anas
Publisher: World Bank Publications
Total Pages: 86
Release: 1999
Genre:
ISBN:

May 1996 The authors present simulation results on the benefits of alternative power tariffs for Nigeria and Indonesia, based on several closely related models of the firm. Nigeria is representative of developing countries where the public sector is inefficient and manufacturers provide their own electricity to compensate for that inefficiency. The use of private generators by Nigerian manufacturers is virtually ubiquitous, even though the government, to protect its monopoly, did not encourage that use in the 1980s. About 89 percent of a sample of Nigerian firms produced some of their power needs internally. But many large firms underused their power plants because of the substantial quantity discounts public power offered to large manufacturers. By contrast, in Indonesia, manufacturers were offered only slight quantity discounts for public power. Indonesia has encouraged manufacturers to produce their own power. About 61 percent of Indonesian manufacturers produced some power internally. Generally, in both countries firms purchase some power from the public sector at a quantity discount (slight in Indonesia, considerable in Nigeria) and also produce power internally at a declining marginal cost. The reliability of public power declines as the total quantity purchased increases, because transmission gets congested. Simulations confirm that an increasing block tariff is optimal in each country and produces savings in the cost of producing public power and in firms' operating costs (including the firm's cost of producing power internally). Under increasing block tariffs, firms that purchase more public power would be charged higher marginal prices than firms that purchase less. Large firms respond to the increasing block tariff by expanding their generating capacity and reducing their reliance on public power, while smaller firms contract their capacities and buy more from the public sector. When congestion in transmission persists, cost savings are higher as the increasing block tariff reduces total use of public power which in turn improves reliability. In Nigeria, where strong quantity discounts are offered, total costs savings (for NEPA and manufacturers) under 1989 conditions are about 4 percent without congestion and increase to 9 percent when there is some congestion. In Indonesia, where quantity discounts are mild, increasing the block tariff produces only slight cost savings.

Infrastructure and Growth in Developing Countries

Infrastructure and Growth in Developing Countries
Author: Stephane Straub
Publisher: World Bank Publications
Total Pages: 54
Release: 2008
Genre: Efficiency of Infrastructure
ISBN:

Abstract: This paper presents a survey of recent research on the economics of infrastructure in developing countries. Energy, transport, telecommunications, water and sanitation are considered. The survey covers two main set of issues: the linkages between infrastructure and economic growth (at the economy-wide, regional and sectoral level) and the composition, sequencing and efficiency of alternative infrastructure investments, including the arbitrage between new investments and maintenance expenditures; OPEX and CAPEX, and public versus private investment. Following the introduction, section 2 discusses the theoretical foundations (growth theory and new economic geography). Section 3 assesses the analysis of 140 specifications from 64 recent empirical papers-examining type of data used, level of aggregation, econometric techniques and nature of the sample-and discusses both the macro-econometric and micro-econometric contributions of these papers. Finally section 4 discusses directions for future research and suggests priorities in data development.

Infrastructure Redux

Infrastructure Redux
Author: N. Anwar
Publisher: Springer
Total Pages: 359
Release: 2014-12-07
Genre: Business & Economics
ISBN: 1137448172

The focus of this book is on industrial infrastructures of production and circulation, from power distribution and roads to dry ports and airports. It looks at how these infrastructures underpin visions of progress and mediate relations between the state and capitalist firms in industrializing districts in Punjab, Pakistan.

Infrastructure for Economic Development and Poverty Reduction in Africa

Infrastructure for Economic Development and Poverty Reduction in Africa
Author: Afeikhena Jerome
Publisher: UN-HABITAT
Total Pages: 108
Release: 2011
Genre: Africa
ISBN: 9211322936

Evaluates the role of infrastructure in promoting economic growth and poverty reduction in Africa. Examines complementary physical infrastructure: telecommunications, power, transport (roads, railways, ports and airports) and water supply. Explores Africa's infrastructure endowment and financing options.

Structural Adjustment, Ownership Transformation, and Size in Polish Industry

Structural Adjustment, Ownership Transformation, and Size in Polish Industry
Author: Stefano Paternostro
Publisher: World Bank Publications
Total Pages: 32
Release: 1999
Genre:
ISBN:

July 1996 The authors argue that significant adjustment took place in Polish industry after Poland's 1990 reforms. They analyze data on two- and three-digit manufacturing industries, disaggregated by firm ownership and size. By applying a statistical model to labor productivity growth, they try to disentangle structural determinants of the recovery from cyclical determinants. They contend that structural determinants outweigh cyclical ones. They find that the productive response of state enterprises was markedly different from that of private firms--private firms outperformed state enterprises (just as anecdotal evidence suggested). Size also matters, at least among private firms. Generally, there seem to be increasing returns to scale for private firms, except for very large enterprises (many of which were previously state-owned and may need further restructuring). The fact that size does not appear to matter among public enterprises suggests that several of them have not yet adopted optimal technologies and production processes.