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Costs of Infrastructure Deficiencies for Manufacturing in Nigerian, Indonesian and Thai Cities

Author

Listed:
  • Kyu Sik Lee

    (World Bank, Washington, DC, kyusiklee@aol.com.)

  • Alex Anas

    (Department of Economics, SUNY at Buffalo, 405 Fronczak Hall, Amherst, New York 14260, USA, alexanas@anassunl.eco.buffalo.edu.)

  • Gi-Taik Oh

    (World Bank, 1818 H Street, NW, Washington, DC 20433, USA, goh@worldbank.org.)

Abstract
This paper is a sequel to an earlier paper on Nigeria published in this journal. Using the fresh results obtained from the sample survey of manufacturing establishments conducted in Indonesia and Thailand (a sample of 290 and 300 establishments, respectively), the authors contrast and compare the findings from these new data with those of an earlier study on Nigeria. The main elements of comparisons include: the extent and incidence of public infrastructure deficiencies; the extent of manufacturers' private provision responses to the deficiencies; the capital shares of various private infrastructure investments including electric power, water, telecommunications, transport and waste disposal; and, costs of producing their own electricity and water. The extent of public infrastructure deficiencies and private provisions varies across the countries and firm sizes. For example, 92 per cent of the Nigerian firms had their own generators to supplement the inadequate public supply, while the figure was 66 per cent in Indonesia and only 6 per cent in Thailand. However, the quality of electric power in Thailand was not very different from that of Indonesia. The total share of capital investment in private infrastructure was 16 per cent of the total capital in the case of the Indonesian firms which is comparable with 14 per cent in the case of the Nigerian firms, but is twice that of the Thai firms. The private costs of infrastructure deficiencies are substantial and the burdens are much greater for small firms than large firms, which has a negative implication for the birth and growth of firms, hence employment and income generation, in cities in developing countries.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:12:p:2135-2149
    DOI: 10.1080/0042098992593
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    References listed on IDEAS

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    1. 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.
    2. 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.
    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. 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.
    5. Anas, Alex & Kyu Sik Lee, 1996. "The benefits of alternative power tariffs for Nigeria and Indonesia," Policy Research Working Paper Series 1606, The World Bank.
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    Cited by:

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    2. Jean-Jacques Dethier & Maximilian Hirn & Stéphane Straub, 2011. "Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data," The World Bank Research Observer, World Bank, vol. 26(2), pages 258-309, August.
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    4. Nakhoda, Aadil, 2014. "The impact of electricity constraints on access to finance: A firm-level study," MPRA Paper 59507, University Library of Munich, Germany.
    5. 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.
    6. John Luiz, 2010. "Infrastructure investment and its performance in Africa over the course of the twentieth century," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(7), pages 512-536, June.
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    9. Stefan Bouzarovski & Saska Petrova & Sergio Tirado-Herrero, 2014. "From Fuel Poverty to Energy Vulnerability: The Importance of Services, Needs and Practices," SPRU Working Paper Series 2014-25, SPRU - Science Policy Research Unit, University of Sussex Business School.

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