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Costs of infrastructure deficiencies in manufacturing in Indonesia, Nigeria, and Thailand


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  • Kyu Sik Lee
  • Anas, Alex
  • Gi-Taik Oh


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.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1604.

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Date of creation: 31 May 1996
Date of revision:
Handle: RePEc:wbk:wbrwps:1604

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Keywords: Public Sector Economics&Finance; Decentralization; Environmental Economics&Policies; Banks&Banking Reform; Water and Industry; Environmental Economics&Policies; Agricultural Research; Urban Services to the Poor; Public Sector Economics&Finance; Banks&Banking Reform;


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Cited by:
  1. Patrick Plane & Marie-Ange Veganzones & Tidiane Kinda, 2011. "Firm Productivity and Investment Climate in Developing Countries: How Does Middle East and North Africa Manufacturing Perform?," Working Papers halshs-00617575, HAL.
  2. Mila Freire & Mario Polèse & Pamela Echeverria, 2003. "Connecting Cities with Macroeconomic Concerns : The Missing Link," World Bank Publications, The World Bank, number 15058, August.
  3. Luis A. Andrés & J. Luis Guasch & Thomas Haven & Vivien Foster, 2008. "The Impact of Private Sector Participation in Infrastructure : Lights, Shadows, and the Road Ahead," World Bank Publications, The World Bank, number 6545, August.
  4. Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," ESE Discussion Papers, Edinburgh School of Economics, University of Edinburgh 179, Edinburgh School of Economics, University of Edinburgh.
  5. Agenor, Pierre-Richard & Moreno-Dodson, Blanca, 2006. "Public infrastructure and growth : new channels and policy implications," Policy Research Working Paper Series 4064, The World Bank.
  6. Nausheen H. Anwar, 1999. "Inefficiencies in Public Electricity Provision and Impacts on Firms in Karachi’s Manufacturing Sector," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 38(2), pages 167-185.
  7. Alby, Philippe & Dethier, Jean-Jacques & Straub, Stephane, 2010. "Firms operating under infrastructure and credit constraints in developing countries : the case of power generators," Policy Research Working Paper Series 5497, The World Bank.


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