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The cost of road infrastructure in low and middle income countries

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  • Collier,Paul
  • Kirchberger,Martina
  • Söderbom,Måns

Abstract

The connections between transport infrastructure and economic development have been extensively analyzed in previous research, but little is known about the cost of infrastructure investments in poor countries. This paper examines drivers of unit costs of construction and maintenance of transport infrastructure in low and middle income countries and documents that: (i) there is a large dispersion in unit costs for comparable road work activities; (ii) after accounting for environmental drivers of costs, residual unit costs are significantly higher in conflict countries; (iii) there is evidence that costs are higher in countries with higher levels of corruption; (iv) these effects are robust to controlling for a country?s public investment capacity and business environment. Our findings have implications for governments aiming to increase connectivity in poor countries.

Suggested Citation

  • Collier,Paul & Kirchberger,Martina & Söderbom,Måns, 2015. "The cost of road infrastructure in low and middle income countries," Policy Research Working Paper Series 7408, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7408
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    Cited by:

    1. Clarete, Ramon L. & Pascua, Gerald Gracius Y., 2018. "The TPP Agreement and Government Procurement: Opportunities and Issues for the Philippines," Philippine Journal of Development PJD 2016 Vol. 43 No. 2d, Philippine Institute for Development Studies.
    2. Pablo D. Fajgelbaum & Edouard Schaal, 2017. "Optimal Transport Networks in Spatial Equilibrium," NBER Working Papers 23200, National Bureau of Economic Research, Inc.
    3. Candice Branchoux & Lin Fang & Yusuke Tateno, 2017. "Estimating infrastructure financing needs in Asia-Pacific least developed countries, landlocked developing countries and small island developing States," MPDD Working Paper Series WP/17/02, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    4. repec:eee:transa:v:113:y:2018:i:c:p:35-54 is not listed on IDEAS
    5. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    6. Remi Jedwab & Adam Storeygard, "undated". "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015," Working Papers 2017-3, The George Washington University, Institute for International Economic Policy.
    7. Various Authors, 2018. "Philippine Journal of Development 2016, No. 2," Philippine Journal of Development PJD 2016 Vol. 43 No. 2x, Philippine Institute for Development Studies.

    More about this item

    Keywords

    Transport Economics Policy&Planning; E-Business; Economic Theory&Research; Public Sector Corruption&Anticorruption Measures; Governance Indicators;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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