IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10650.html
   My bibliography  Save this paper

Spatial Misallocation of Complementary Infrastructure Investment : Evidence from Brazil

Author

Listed:
  • Pérez-Sebastián,Fidel
  • Serrano Quintero,Rafael
  • Steinbuks,Jevgenijs

Abstract

How does the misallocation of complementary public capital affect the spatial organization of economic activity To answer this question, this paper endogenizes the government's decision to invest in the transport and electricity networks. A novel multi-sector quantitative spatial equilibrium model incorporates the quality of the electric power and the road transportation infrastructure networks, which determine sectoral productivities and trade costs. Simulation results for the Brazilian economy point to significant welfare gains from reallocating infrastructure investment. Spatial and fiscal complementarities in heterogeneous infrastructure provision determine a sizeable part of those gains. Misallocation of both infrastructure investments is positively associated with local political support for the incumbent authority.

Suggested Citation

  • Pérez-Sebastián,Fidel & Serrano Quintero,Rafael & Steinbuks,Jevgenijs, 2023. "Spatial Misallocation of Complementary Infrastructure Investment : Evidence from Brazil," Policy Research Working Paper Series 10650, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10650
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/099822112182319219/pdf/IDU009479c3106f960481d0b85a02738d5c6f7aa.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kanbur, Ravi & Venables, Anthony J. (ed.), 2005. "Spatial Inequality and Development," OUP Catalogue, Oxford University Press, number 9780199278633, Decembrie.
    2. Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
    3. Francisco Alvarez-Cuadrado & Markus Poschke, 2011. "Structural Change Out of Agriculture: Labor Push versus Labor Pull," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(3), pages 127-158, July.
    4. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
    5. Banerjee, Abhijit & Duflo, Esther & Qian, Nancy, 2020. "On the road: Access to transportation infrastructure and economic growth in China," Journal of Development Economics, Elsevier, vol. 145(C).
    6. Gertler, Paul J. & Gonzalez-Navarro, Marco & Gračner, Tadeja & Rothenberg, Alexander D., 2024. "Road maintenance and local economic development: Evidence from Indonesia’s highways," Journal of Urban Economics, Elsevier, vol. 143(C).
    7. Gallen, Trevor S. & Winston, Clifford, 2021. "Transportation capital and its effects on the U.S. economy: A general equilibrium approach," Journal of Macroeconomics, Elsevier, vol. 69(C).
    8. Alex Trew, 2020. "Endogenous Infrastructure Development and Spatial Takeoff in the First Industrial Revolution," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(2), pages 44-93, April.
    9. Kanbur, Ravi & Venables, Anthony J., 2005. "SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project," Working Papers 127127, Cornell University, Department of Applied Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    2. Brian Blankespoor & M Shahe Emran & Forhad Shilpi & Lu Xu, 2022. "Bridge to bigpush or backwash? Market integration, reallocation and productivity effects of Jamuna Bridge in Bangladesh [Agricultural technology choice and transport]," Journal of Economic Geography, Oxford University Press, vol. 22(4), pages 853-871.
    3. Forhad Shilpi & M Shahe Emran & Brian Blankespoor & Harold Coulombe, 2024. "Temporary trade shocks and regional development: evidence from the closure of Abidjan port," Journal of Economic Geography, Oxford University Press, vol. 24(2), pages 333-352.
    4. P. Charnoz & C. Lelarge & C. Trevien, 2016. "Communication Costs and the Internal Organization of Multi-Plant Businesses: Evidence from the Impact of the French High-Speed Rail," Documents de Travail de l'Insee - INSEE Working Papers g2016-02, Institut National de la Statistique et des Etudes Economiques.
    5. Sunderlin, William D. & Dewi, Sonya & Puntodewo, Atie & Müller, Daniel & Angelsen, Arild & Epprecht, Michael, 2008. "Why forests are important for global poverty alleviation: A spatial explanation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(2).
    6. Güneş Aşık & Ulaş Karakoç & Şevket Pamuk, 2023. "Regional inequalities and the West–East divide in Turkey since 1913," Economic History Review, Economic History Society, vol. 76(4), pages 1305-1332, November.
    7. World Bank, 2004. "Sri Lanka - Reshaping Economic Geography : Connecting People to Prosperity," World Bank Publications - Books, The World Bank Group, number 21549, April.
    8. Bird, Julia & Straub, Stéphane, 2020. "The Brasília experiment: The heterogeneous impact of road access on spatial development in Brazil," World Development, Elsevier, vol. 127(C).
    9. Bauluz, Luis & Bukowski, Pawel & Fransham, Mark & Lee, Annie Seong & López Forero, Margarita & Novokmet, Filip & Breau, Sébastien & Lee, Neil & Malgouyres, Clément & Schularick, Moritz & Verdugo, Greg, 2023. "Spatial wage inequality in North America and Western Europe: changes between and within local labour markets 1975-2019," LSE Research Online Documents on Economics 121290, London School of Economics and Political Science, LSE Library.
    10. Wenxiao WANG & Shandre THANGAVELU, 2024. "Urban Agglomeration, Firm Performance, and Global Value Chain in China," Working Papers DP-2024-14, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Roberto Ezcurra & Andrés Rodríguez-Pose, 2017. "Does ethnic segregation matter for spatial inequality?," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1149-1178.
    12. Yang, Xiaoliang & Barros, Lucy & Matthews, Kent & Meenagh, David, 2024. "The dynamics of redistribution, inequality and growth across China’s regions," Journal of Policy Modeling, Elsevier, vol. 46(3), pages 613-637.
    13. Hamidreza Rabiei‐Dastjerdi & Stephen A. Matthews, 2021. "Who gets what, where, and how much? Composite index of spatial inequality for small areas in Tehran," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 191-205, February.
    14. Marianne Matthee & Wim Naudé, 2008. "The Determinants of Regional Manufactured Exports from a Developing Country," International Regional Science Review, , vol. 31(4), pages 343-358, October.
    15. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    16. Felipe González & Josepa Miquel-Florensa & Mounu Prem & Stéphane Straub, 2025. "The Dark Side of Infrastructure: Roads, Repression and Land in Authoritarian Paraguay," The Economic Journal, Royal Economic Society, vol. 135(666), pages 653-669.
    17. Rey, Sergio, 2016. "Space-time patterns of rank concordance: Local indicators of mobility association with application to spatial income inequality dynamics," MPRA Paper 69480, University Library of Munich, Germany.
    18. Adriana Kocornik‐Mina, 2009. "Spatial econometrics of multiregional growth: The case of India," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 279-300, June.
    19. Ravi Kanbur, 2008. "Globalization, Growth, and Distribution," World Bank Publications - Books, The World Bank Group, number 28017, April.
    20. Kerstin Enflo & Joan Ramón Rosés, 2015. "Coping with regional inequality in Sweden: structural change, migrations, and policy, 1860–2000," Economic History Review, Economic History Society, vol. 68(1), pages 191-217, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.