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Costs of Deficient Infrastructure: The Case of Nigerian Manufacturing

Author

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  • Kyu Sik Lee

    (Infrastructure and Urban Development Department, The World Bank, 1818 H Street NW, Washington, DC 20433)

  • Alex Anas

    (State University of New York, Buffalo, NY, USA)

Abstract

As cities in developing countries continue to grow rapidly, the need to meet the increasing demand for urban infrastructure services has become an important policy problem, since failures to respond adequately to such demand affect productivity and the quality of life in those cities. Based on a survey of manufacturing establishments in Nigerian cities, this paper shows manufacturers' responses to the deficiencies of various public infrastructure services and the extent of the costs of private provisions which serve as the alternatives to the firms. From the empirical observations, the authors develop several policy options: (1) regulatory changes to enable fuller utilisation of existing private provision capacities, such as allowing the sale of excess private power supply; (2) private sector participation in the supply of infrastructure services to make such markets contestable; and (3) pricing policies which will be more efficient in the presence of congestion, systems failures and variations in private provisions by firm size and location.

Suggested Citation

  • Kyu Sik Lee & Alex Anas, 1992. "Costs of Deficient Infrastructure: The Case of Nigerian Manufacturing," Urban Studies, Urban Studies Journal Limited, vol. 29(7), pages 1071-1092, October.
    • Handle: RePEc:sae:urbstu:v:29:y:1992:i:7:p:1071-1092
    DOI: 10.1080/00420989220081051
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    References listed on IDEAS

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    1. Alex Anas & Kyu Sik Lee, 1989. "INFRASTRUCTURE INVESTMENT AND PRODUCTIVITY: The Case of Nigerian Manufacturing A Framework for Policy Study," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 1(2), pages 65-76, July.
    2. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-132, Jan.-Feb..
    3. Kyu Sik Lee, 1985. "An Evaluation of Decentralization Policies in Light of Changing Location Patterns of Employment in the Seoul Region," Korean Economic Review, Korean Economic Association, vol. 1, pages 245-262.
    4. Whittington, Dale & Lauria, Donald T. & Xinming Mu, 1989. "Paying for urban services : a study of water vending and willingness to pay for water in Onitsha, Nigeria," Policy Research Working Paper Series 363, The World Bank.
    5. Baumol, William J & Lee, Kyu Sik, 1991. "Contestable Markets, Trade, and Development," The World Bank Research Observer, World Bank, vol. 6(1), pages 1-17, January.
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    Cited by:

    1. Pillai N., Vijayamohanan, 2008. "Infrastructure, Growth And Human Development In Kerala," MPRA Paper 7017, University Library of Munich, Germany.
    2. Gregory K. Ingram, 1998. "Patterns of Metropolitan Development: What Have We Learned?," Urban Studies, Urban Studies Journal Limited, vol. 35(7), pages 1019-1035, June.
    3. Malpezzi, Stephen, 2001. "The Contributions of Stephen K. Mayo to Housing and Urban Economics," Journal of Housing Economics, Elsevier, vol. 10(2), pages 72-108, June.
    4. Anas, Alex & Kyu Sik Lee & Murray, Michael, 1996. "Infrastructure bottlenecks, private provision, and industrial productivity : a study of Indonesian and Thai cities," Policy Research Working Paper Series 1603, The World Bank.
    5. Fox, Sean, 2014. "The Political Economy of Slums: Theory and Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 54(C), pages 191-203.
    6. Michel Boisvert & Lahouari Senouci, 2000. "Marginal Privatisation and Infrastructural Deficiencies: Anas and Lee Revisited," Urban Studies, Urban Studies Journal Limited, vol. 37(7), pages 1131-1144, June.
    7. Alampay, E., 1999. "Organizations in development: the changing nature of service provision in the Philippines," ISS Working Papers - General Series 19044, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. Motkuri, Venkatanarayana, 2011. "Infrastructure in Andhra Pradesh : Economic and Social Infrastructure," MPRA Paper 49076, University Library of Munich, Germany.
    9. Gulyani, Sumila, 1999. "Innovating with Infrastructure: How India's Largest Carmaker Copes with Poor Electricity Supply," World Development, Elsevier, vol. 27(10), pages 1749-1768, October.
    10. Ingram, Gregory K., 1997. "Patterns of metropolitan development : what have we learned?," Policy Research Working Paper Series 1841, The World Bank.
    11. Melvin Ayogu, 0. "Infrastructure and Economic Development in Africa: A Review-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 16(suppl_1), pages -126.
    12. Raffaele Scuderi & Giuseppe Tesoriere & Vincenzo Fasone, 2019. "Natural events and performance of micro firms: the impact of floods on shops in Uganda," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 609-627, July.
    13. Kyu Sik Lee & Alex Anas & Gi-Taik Oh, 1999. "Costs of Infrastructure Deficiencies for Manufacturing in Nigerian, Indonesian and Thai Cities," Urban Studies, Urban Studies Journal Limited, vol. 36(12), pages 2135-2149, November.

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