Infrastructure Bottlenecks, Private Provision, and Industrial Productivity: A Study of Indonesian and Thai Cities

36 Pages Posted: 20 Apr 2016

See all articles by Alex Anas

Alex Anas

SUNY at Buffalo, College of Arts & Sciences, Department of Economics

Kyu Sik Lee

Independent

Michael P. Murray

Bates College

Date Written: May 1996

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 and Lee, Kyu Sik and Murray, Michael P., Infrastructure Bottlenecks, Private Provision, and Industrial Productivity: A Study of Indonesian and Thai Cities (May 1996). Available at SSRN: https://ssrn.com/abstract=636135

Alex Anas (Contact Author)

SUNY at Buffalo, College of Arts & Sciences, Department of Economics ( email )

415 Fronczak Hall
Buffalo, NY 14260
United States

Kyu Sik Lee

Independent ( email )

Michael P. Murray

Bates College ( email )

Lewiston, ME 04240
United States
207-786-6085 (Phone)

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