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Infrastructure bottlenecks, private provision, and industrial productivity : a study of Indonesian and Thai cities

Author

Listed:
  • Anas, Alex
  • Kyu Sik Lee
  • Murray, Michael

Abstract

This research project followed an earlier similar project on Nigeria, applying the same methods. A sample of manufacturers was surveyed to document their responses to infrastructure deficiencies in electricity, water, transport, telecommunications, and waste disposal. They found the manufacturers undertook significant expenditures to offset deficiencies in publicly provided infrastructure services, and that changing public policy toward privately supplied infrastructure and changing the pricing of public infrastructure could yield significant savings in social costs. Thailand and Indonesia have made significant strides in following the policies for private sector participation in infrastructure provision. Nigeria, where public infrastructure monopolies still dominate, lags behind, yet stands to benefit most from such policy reform. Government policy toward the industrial organization and pricing of infrastructure sectors can significantly help a developing economy realize the benefits of private sector participation in the provision of infrastructure services.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbrwps:1603
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    References listed on IDEAS

    as
    1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    2. Baumol, William J & Lee, Kyu Sik, 1991. "Contestable Markets, Trade, and Development," World Bank Research Observer, World Bank Group, vol. 6(1), pages 1-17, January.
    3. 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.
    4. Kyu Sik Lee & Anas, Alex, 1989. "Manufacturers'responses to infrastructure deficiencies in Nigeria : private alternatives and policy options," Policy Research Working Paper Series 325, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gulyani, Sumila, 2001. "Effects of Poor Transportation on Lean Production and Industrial Clustering: Evidence from the Indian Auto Industry," World Development, Elsevier, vol. 29(7), pages 1157-1177, July.
    2. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    3. 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.

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