Infrastructure performance and reform in developing and transition economies: evidence from a survey of productivity measures

The authors review about 80 studies on electricity and gas, water and sanitation, and rail and ports (with a footnote on telecommunications) in developing countries. The main policy lesson is that there is a difference in the relevance of ownership for efficiency between utilities and transport in developing countries. In transport, private operators have tended to perform better than public operators. For utilities, ownership often does not matter as much as sometimes argued. Most cross-country studies find no statistically significant difference in efficiency scores between public and private providers. As for the country-specific studies, some do find differences in performance over time but these differences tend to matter much less than a large number of other variables. Across sectors, private operators functioning in a competitive environment or regulated under price caps or hybrid regulatory regimes tend to catch up best practice faster than public operators. There is a very strong case to push regulators in developing and transition economies toward a more systematic reliance on yardstick competition in a sector in which residual monopoly powers tend to be common.Enterprise Development&Reform,Labor Policies,Banks&Banking Reform,Environmental Economics&Policies,Economic Theory&Research,Environmental Economics&Policies,Economic Theory&Research,Banks&Banking Reform,Health Monitoring&Evaluation,Health Economics&Finance

Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges

This paper presents a survey of recent research on the economics of infrastructure in developing countries. Energy, transport, telecommunications, water and sanitation are considered. The survey covers two main set of issues: the linkages between infrastructure and economic growth (at the economy-wide, regional and sectoral level) and the composition, sequencing and efficiency of alternative infrastructure investments, including the arbitrage between new investments and maintenance expenditures; OPEX and CAPEX, and public versus private investment. Following the introduction, section 2 discusses the theoretical foundations (growth theory and new economic geography). Section 3 assesses the analysis of 140 specifications from 64 recent empirical papers examining type of data used, level of aggregation, econometric techniques and nature of the sample and discusses both the macro-econometric and microeconometric contributions of these papers. Finally section 4 discusses directions for future research and suggests priorities in data development.

Infrastructure and growth in developing countries : recent advances and research challenges

This paper presents a survey of recent research on the economics of infrastructure in developing countries. Energy, transport, telecommunications, water and sanitation are considered. The survey covers two main set of issues: the linkages between infrastructure and economic growth (at the economy-wide, regional and sectoral level) and the composition, sequencing and efficiency of alternative infrastructure investments, including thearbitrage between new investments and maintenance expenditures; OPEX and CAPEX, and public versus private investment. Following the introduction, section 2 discusses the theoretical foundations (growth theory and new economic geography). Section 3 assesses the analysis of 140 specifications from 64 recent empirical papers-examining type of data used, level of aggregation, econometric techniques and nature of the sample-and discusses both the macro-econometric and micro-econometric contributions of these papers. Finally section 4 discusses directions for future research and suggests priorities in data development.Transport Economics Policy&Planning,Economic Theory&Research,Non Bank Financial Institutions,Infrastructure Economics,Political Economy

Capital Structure and Regulation: Does Ownership Matter?

We construct a comprehensive panel data of 96 publicly traded European utilities over the period 1994-2005 in order to study the relationship between the capital structure of regulated firms, regulated prices, and investments, and examine if and how this interaction is affected by ownership structure. We show that firms in our sample increase their leverage after becoming regulated by an independent regulatory agency, but only if they are privately controlled. Moreover, we find that the leverage of these firms has a positive and significant effect on regulated prices, but not vice versa, and it also has a positive and significant effect on their investment levels. Our results are consistent with the theory that privately-controlled firms use leverage strategically to shield themselves against regulatory opportunism.Regulated Utilities, Regulatory Agencies, Capital Structure, Leverage, Investment, Private and State Ownership

Preparing for a Northwest Passage: A Workshop on the Role of New England in Navigating the New Arctic

Preparing for a Northwest Passage: A Workshop on the Role of New England in Navigating the New Arctic (March 25 - 27, 2018 -- The University of New Hampshire) paired two of NSF\u27s 10 Big Ideas: Navigating the New Arctic and Growing Convergence Research at NSF. During this event, participants assessed economic, environmental, and social impacts of Arctic change on New England and established convergence research initiatives to prepare for, adapt to, and respond to these effects. Shipping routes through an ice-free Northwest Passage in combination with modifications to ocean circulation and regional climate patterns linked to Arctic ice melt will affect trade, fisheries, tourism, coastal ecology, air and water quality, animal migration, and demographics not only in the Arctic but also in lower latitude coastal regions such as New England. With profound changes on the horizon, this is a critical opportunity for New England to prepare for uncertain yet inevitable economic and environmental impacts of Arctic change

The Effects of Privatization on Firms and on Social Welfare: The Chilean Case

Chile led the Latin American pack in launching its far-reaching privatization program, but the question of whether the process has made firms more profitable remains. Also unclear is whether society as a whole is better off because of privatization. This paper looks at the performance of several industries to gauge the effects of privatization on Chilean firms and social welfare. The authors’ research, which is both broad and deep, yields some surprising findings. For example, contrary to commonly-held perceptions of bloated state-run bureaucracies, the authors find that the employment ranks of regulated entities actually swelled after their ownership switched to private hands. The paper evaluates a wide range of aspects of the privatization process, from highway tolls to private pension fund returns to school vouchers, and concludes with some concrete recommendations for future improvements.

Expanding Trade within Africa: The Impact of Trade Facilitation

This paper examines the impact of trade facilitation on intra-African trade. The authors examine the role of trade facilitation reforms, such as increased port efficiency, improved customs, and regulatory environments, and upgrading services infrastructure on trade between African countries. They also consider how regional trade agreements relate to intra-African trade flows. Using trade data from 2003 to 2004, they find that improvement in ports and services infrastructure promise relatively more expansion in intra-African trade than other measures. They also show that, almost all regional trade agreements have a positive effect on trade flowsTrade; Africa; Regional Integration; Trade Facilitation