Costs of infrastructure deficiencies in manufacturing in Indonesia, Nigeria, and Thailand

Abstract

Using fresh results from a sample survey of manufacturing establishments in Indonesia and Thailand, the authors contrast and compare with data from an earlier study on Nigeria. They compare especially: the extent and incidence of public infrastructure deficiencies; the extent of manufacturers'private provision of infrastructure in response to such deficiencies; the capital shares of various private infrastructure investments, including electric power, water, telecommunications, transport, and waste disposal; and the firms'costs for producing their own electricity and water. The extent of public infrastructure deficiencies and private provision of infrastructure services varies across countries and by firm size. The total share of capital investment in private infrastructure was similar among Nigerian and Indonesian firms (14 - 16 percent) which is twice that in Thai firms. The private costs of infrastructure deficiencies are substantial and the burdens are much greater on small firms than on large firms.Public Sector Economics&Finance,Decentralization,Environmental Economics&Policies,Banks&Banking Reform,Water and Industry,Environmental Economics&Policies,Agricultural Research,Urban Services to the Poor,Public Sector Economics&Finance,Banks&Banking Reform