Infrastructure Investment and Growth in Developing Countries: Does the Type of Contract Matter?

2012 ◽  
Vol 4 (2) ◽  
pp. 139-152
Author(s):  
Marco Percoco
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Public Investment ◽  
Private Investment ◽  
Public Private Partnerships ◽  
Low Income Countries ◽  
Extensive Literature ◽  
Infrastructure Projects ◽  
Private Participation

The aim of this article is to verify whether public investment in infrastructure is effective in terms of growth. While there is extensive literature analysing the effect of public capital stock on development and growth, comparatively less attention has been devoted to the contractual mechanisms characterising this investment. In this article, we focus on private participation in infrastructure projects through forms of public–private partnerships and verify whether the use of such contracts promotes economic growth. By analysing the performance of 81 developing countries over the period 1991–2008, we found that public–private partnerships are particularly relevant in terms of growth for high-income countries, whereas we could not find significant effect for low-income countries. We interpret this result as evidence of the relevance of better institutions, especially in terms of quality of regulation and rule of law, for attracting private investment in infrastructure projects and then for promoting growth.

scholarly journals Assessing the effect of public capital on growth: An extension of the World Bank Long-Term Growth Model

2019 ◽  
Vol 3 (1) ◽  
pp. 22
Author(s):  
Sharmila Devadas ◽  
Steven Pennings
Keyword(s):  
Growth Model ◽  
Low Income ◽  
Capital Stock ◽  
Public Investment ◽  
Public Capital ◽  
Low Income Countries ◽  
The World ◽  
A Share

To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.

The Performance of PPPs in Developing Countries

2020 ◽  
pp. 22-51
Author(s):  
James Leigland
Keyword(s):  
Developing Countries ◽  
International Organizations ◽  
Low Income ◽  
Project Success ◽  
Private Investment ◽  
Low Income Countries ◽  
Global Evidence

Precisely how have PPPs underperformed? This chapter reviews global evidence relating to: (i) how widely PPPs are actually used in developing countries; (ii) the commercial profitability associated with these projects; (iii) the costs and complexities of project preparation; (iv) the ability of such projects to generate private investment finance; (v) the pro-poor benefits of these projects; and (vi) the institutional and political problems that limit project success. In light of this evidence, how practical are recent efforts by international organizations to promote increases in the number and size of PPPs in developing countries. The G20’s recent advocacy of “transformational” PPPs as mechanisms for dealing effectively with infrastructure challenges in low-income countries is an example of this kind of PPP promotion.

Decision-Making in the Prescription of Orthotics and Prosthetics for Partial-Foot Amputees

2019 ◽  
Author(s):  
Pratima Saravanan ◽  
Charity Hipple ◽  
Jingxin Wang ◽  
Christopher McComb ◽  
Jessica Menold
Keyword(s):  
Decision Making ◽  
Low Income ◽  
Low Income Countries ◽  
Extensive Literature ◽  
Proposed Model ◽  
Decision Making Model ◽  
Future Work ◽  
Automated Methods

Abstract Prosthetists face a daunting number of decisions that directly affect an amputee’s ability to walk and indirectly affect the overall quality of life of that amputee. In addition, the lack of resources in low-income countries provides a barrier to receive care after an amputation, and approximately 80% of amputees in low-income countries lack appropriate prosthetic care. In this research, we are motivated to understand what factors affect the decision-making strategies of prosthetists and podiatrists when prescribing prosthetics and orthotics to partial foot amputees. This work establishes a decision-making framework as a step towards automated methods that may reduce the complexities and decision-making burden of prosthetic prescription, ultimately increasing the efficiency of prosthetic prescription in low-resourced areas. A decision-making model is proposed based on an extensive literature review of over 100 papers. The proposed model is compared to qualitative data regarding decision-making strategies during prosthetic or orthotic prescription collected from nine prosthetists, surgeons, and other healthcare professionals directly involved in amputee care. Changes to the proposed model are described and future work exploring the role of automated methods to support decision-making in the context of prosthetics is discussed.

scholarly journals The Rotavirus Vaccine Landscape, an Update

Pathogens ◽  
2021 ◽  
Vol 10 (5) ◽  
pp. 520
Author(s):  
Roberto Cárcamo-Calvo ◽  
Carlos Muñoz ◽  
Javier Buesa ◽  
Jesús Rodríguez-Díaz ◽  
Roberto Gozalbo-Rovira
Keyword(s):  
Developing Countries ◽  
Mortality Rate ◽  
Low Income ◽  
State Of The Art ◽  
The State ◽  
Cold Chain ◽  
Low Income Countries ◽  
Rotavirus Vaccine ◽  
Oral Vaccines

Rotavirus is the leading cause of severe acute childhood gastroenteritis, responsible for more than 128,500 deaths per year, mainly in low-income countries. Although the mortality rate has dropped significantly since the introduction of the first vaccines around 2006, an estimated 83,158 deaths are still preventable. The two main vaccines currently deployed, Rotarix and RotaTeq, both live oral vaccines, have been shown to be less effective in developing countries. In addition, they have been associated with a slight risk of intussusception, and the need for cold chain maintenance limits the accessibility of these vaccines to certain areas, leaving 65% of children worldwide unvaccinated and therefore unprotected. Against this backdrop, here we review the main vaccines under development and the state of the art on potential alternatives.

scholarly journals Why Do Developing Countries Tax So Little?

2014 ◽  
Vol 28 (4) ◽  
pp. 99-120 ◽  
Author(s):  
Timothy Besley ◽  
Torsten Persson
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
News Media ◽  
Weak Sense ◽  
Cultural Factors ◽  
Low Income Countries ◽  
Tax Revenue ◽  
Weak Institutions ◽  
Social And Cultural Factors ◽  
A Share

Low-income countries typically collect taxes of between 10 to 20 percent of GDP while the average for high-income countries is more like 40 percent. In order to understand taxation, economic development, and the relationships between them, we need to think about the forces that drive the development process. Poor countries are poor for certain reasons, and these reasons can also help to explain their weakness in raising tax revenue. We begin by laying out some basic relationships regarding how tax revenue as a share of GDP varies with per capita income and with the breadth of a country's tax base. We sketch a baseline model of what determines a country's tax revenue as a share of GDP. We then turn to our primary focus: why do developing countries tax so little? We begin with factors related to the economic structure of these economies. But we argue that there is also an important role for political factors, such as weak institutions, fragmented polities, and a lack of transparency due to weak news media. Moreover, sociological and cultural factors—such as a weak sense of national identity and a poor norm for compliance—may stifle the collection of tax revenue. In each case, we suggest the need for a dynamic approach that encompasses the two-way interactions between these political, social, and cultural factors and the economy.

Infrastructure deficit and opportunities in Africa

2017 ◽  
Author(s):  
Albert Mafusire ◽  
Zuzana Brixiova ◽  
John Anyanwu ◽  
Qingwei Meng
Keyword(s):  
Private Sector ◽  
Low Income ◽  
Private Investment ◽  
Low Income Countries ◽  
Infrastructure Development ◽  
African Countries ◽  
Policy Makers ◽  
Private Sector Investment ◽  
Investment Opportunities ◽  
Financing Infrastructure

Private sector investment opportunities in Africa’s infrastructure are huge. Regulatory reforms across African countries are identified as critical to the realization of the expected investment flows in the infrastructure sector. However, planners and policy makers need to note that there are infrastructure deficiencies in all subsectors with low income countries (LICs) in Africa facing the greatest challenge. Inefficiencies in implementing infrastructure projects account for USD 17 billion annually and improving the capacity of African countries will help minimize these costs. In this regard, the donor community must play a greater role in African LICs while innovative financing mechanisms must be the focus in the relatively richer countries of the continent. Traditional sources of financing infrastructure development remain important but private investment is critical in closing the current gaps. Countries need to devise mechanisms to exploit opportunities and avoid pitfalls in investing in infrastructure.

scholarly journals Availability, Accessibility, and Quality of Conservative Kidney Management Worldwide

2020 ◽  
Vol 16 (1) ◽  
pp. 79-87
Author(s):  
Meaghan Lunney ◽  
Aminu K. Bello ◽  
Adeera Levin ◽  
Helen Tam-Tham ◽  
Chandra Thomas ◽  
...  
Keyword(s):  
Health Care Providers ◽  
Low Income ◽  
Kidney Failure ◽  
Low Income Countries ◽  
Multidisciplinary Teams ◽  
Spiritual Support ◽  
Care Providers ◽  
The Status ◽  
Kidney Health

Background and objectivesPeople with kidney failure typically receive KRT in the form of dialysis or transplantation. However, studies have suggested that not all patients with kidney failure are best suited for KRT. Additionally, KRT is costly and not always accessible in resource-restricted settings. Conservative kidney management is an alternate kidney failure therapy that focuses on symptom management, psychologic health, spiritual care, and family and social support. Despite the importance of conservative kidney management in kidney failure care, several barriers exist that affect its uptake and quality.Design, setting, participants, & measurementsThe Global Kidney Health Atlas is an ongoing initiative of the International Society of Nephrology that aims to monitor and evaluate the status of global kidney care worldwide. This study reports on findings from the 2018 Global Kidney Health Atlas survey, specifically addressing the availability, accessibility, and quality of conservative kidney management.ResultsRespondents from 160 countries completed the survey, and 154 answered questions pertaining to conservative kidney management. Of these, 124 (81%) stated that conservative kidney management was available. Accessibility was low worldwide, particularly in low-income countries. Less than half of countries utilized multidisciplinary teams (46%); utilized shared decision making (32%); or provided psychologic, cultural, or spiritual support (36%). One-quarter provided relevant health care providers with training on conservative kidney management delivery.ConclusionsOverall, conservative kidney management is available in most countries; however, it is not optimally accessible or of the highest quality.

scholarly journals Determinants of Private Investment Contracts in the Basic Sanitation Sector: Evidence for Developing Countries

2020 ◽  
Author(s):  
Dianifer Leal Borges ◽  
Rodrigo Nobre Fernandez ◽  
Cláudio Djissey Shikida ◽  
Luciana de Andrade Costa
Keyword(s):  
Developing Countries ◽  
Negative Binomial ◽  
Private Investment ◽  
Sanitation Services ◽  
Key Factor ◽  
Basic Sanitation ◽  
Main Determinants ◽  
The Empirical Analysis ◽  
Macroeconomic Environment

Abstract Investment in infrastructure is a key factor for improving the quality of life of the population and, consequently, for the economic development of nations. In this context, the universalization of water and sanitation services is of great importance due mainly to their impact on public health. Based on the work of Yehoue et al. (2006) and Sharma (2012), this article studies the determinants of the number of private investment contracts for the basic sanitation sector. In the empirical analysis, with a panel of developing countries during the years 2003-2016, we use the following counting estimators to study the number of contracts in the sector: Negative, Poisson, Negative Binomial, and Zero Inflated negative binomial with corrected Vuong (ZINBCV). The results show that the channels of the macroeconomic environment, foreign investment and the political environment are the main determinants in the formulation of new contracts in the basic sanitation sector.

Modeling African Economies

2015 ◽  
pp. 369-392
Author(s):  
Andrew Berg ◽  
Shu-Chun S. Yang ◽  
Luis-Felipe Zanna
Keyword(s):  
Low Income ◽  
Capital Mobility ◽  
Public Investment ◽  
Large Population ◽  
Balance Sheet ◽  
Low Income Countries ◽  
International Capital Mobility ◽  
Fiscal Multipliers ◽  
Balance Sheet Effects ◽  
Dynamic Stochastic

This chapter presents a stylized framework for modeling African economies using the dynamic stochastic general equilibrium (DSGE) approach. We introduce several features relevant to low-income countries, including a large population without access to financial markets, restricted international capital mobility, low governance quality, and explicit central bank balance-sheet effects. The calibrated model can be useful in addressing important macroeconomic policy issues in many African economies. The applications presented here include (i) reserve accumulation policy responses to aid surges, (ii) government spending, financing schemes, and fiscal multipliers, (iii) management of natural resource revenues, and (iv) public investment surges and debt sustainability.

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