Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure
The authors provide empirical evidence on the impact that private participation in infrastructure has had on key macroeconomic variables in a sample of 21 Latin American countries from 1985-98. Specifically, they look at the effects on GDP per capi...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/10/2040833/macroeconomics-effects-private-sector-participation-latin-americas-infrastructure http://hdl.handle.net/10986/19213 |
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okr-10986-192132021-04-23T14:03:42Z Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure Trujillo, Lourdes Martin, Noelia Estache, Antonio Campos, Javier PRIVATE SECTOR PARTICIPATION PRIVATE INFRASTRUCTURE PUBLIC EXPENDITURES GROSS DOMESTIC PRODUCT PUBLIC INVESTMENTS PRIVATE INVESTMENTS UTILITIES TRANSPORT INFRASTRUCTURE GREENFIELD PROJECTS RECURRENT COSTS INFRASTRUCTURE PRIVATIZATION CORRELATIONS CROWDING CROWDING OUT DEVELOPMENT INDICATORS ECONOMETRICS ECONOMICS EMPIRICAL EVIDENCE EQUILIBRIUM ESTIMATORS EXPENDITURES INCOME INCOME LEVELS INSTITUTIONAL CHANGE MACROECONOMICS METHODOLOGY MODELING POLICY ENVIRONMENT POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PROGRAMS PUBLIC EXPENDITURES RESEARCH WORKING PAPERS TELECOMMUNICATIONS TELECOMS TRADEOFFS VARIABILITY INFRASTRUCTURE PRIVATIZATION The authors provide empirical evidence on the impact that private participation in infrastructure has had on key macroeconomic variables in a sample of 21 Latin American countries from 1985-98. Specifically, they look at the effects on GDP per capita, current public expenditures, public investment, and private investment, controlling for country effects and institutional factors. The authors also investigate the relevance of the specific contractual form of private participation contracts on these variables and show differentiated effects according to contract types. The results suggest that: 1) Private sector involvement in utilities and transport have some, but not impressive, positive effects on GDP per capita. 2) There is some degree of crowding-out of private investment resulting from greenfield projects in utilities, and delayed crowding-in from concessions in transport. 3) There is crowding-in of public investment by private participation in utilities, while there is crowding-out by increased private investment in transport. 4) Private participation in utilities decreases recurrent expenditures, while in transport it results in an increase. The net effect on the public sector account is uncertain, but this uncertainty is a major risk. The revelation of this risk may be the main contribution of this paper since it is inconsistent with the fiscal gains expected by many policymakers as they engage in infrastructure privatization programs. 2014-08-01T19:05:42Z 2014-08-01T19:05:42Z 2002-10 http://documents.worldbank.org/curated/en/2002/10/2040833/macroeconomics-effects-private-sector-participation-latin-americas-infrastructure http://hdl.handle.net/10986/19213 English en_US Policy Research Working Paper;No. 2906 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
PRIVATE SECTOR PARTICIPATION PRIVATE INFRASTRUCTURE PUBLIC EXPENDITURES GROSS DOMESTIC PRODUCT PUBLIC INVESTMENTS PRIVATE INVESTMENTS UTILITIES TRANSPORT INFRASTRUCTURE GREENFIELD PROJECTS RECURRENT COSTS INFRASTRUCTURE PRIVATIZATION CORRELATIONS CROWDING CROWDING OUT DEVELOPMENT INDICATORS ECONOMETRICS ECONOMICS EMPIRICAL EVIDENCE EQUILIBRIUM ESTIMATORS EXPENDITURES INCOME INCOME LEVELS INSTITUTIONAL CHANGE MACROECONOMICS METHODOLOGY MODELING POLICY ENVIRONMENT POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PROGRAMS PUBLIC EXPENDITURES RESEARCH WORKING PAPERS TELECOMMUNICATIONS TELECOMS TRADEOFFS VARIABILITY INFRASTRUCTURE PRIVATIZATION |
| spellingShingle |
PRIVATE SECTOR PARTICIPATION PRIVATE INFRASTRUCTURE PUBLIC EXPENDITURES GROSS DOMESTIC PRODUCT PUBLIC INVESTMENTS PRIVATE INVESTMENTS UTILITIES TRANSPORT INFRASTRUCTURE GREENFIELD PROJECTS RECURRENT COSTS INFRASTRUCTURE PRIVATIZATION CORRELATIONS CROWDING CROWDING OUT DEVELOPMENT INDICATORS ECONOMETRICS ECONOMICS EMPIRICAL EVIDENCE EQUILIBRIUM ESTIMATORS EXPENDITURES INCOME INCOME LEVELS INSTITUTIONAL CHANGE MACROECONOMICS METHODOLOGY MODELING POLICY ENVIRONMENT POLICY RESEARCH POLITICAL ECONOMY PRIVATE SECTOR PROGRAMS PUBLIC EXPENDITURES RESEARCH WORKING PAPERS TELECOMMUNICATIONS TELECOMS TRADEOFFS VARIABILITY INFRASTRUCTURE PRIVATIZATION Trujillo, Lourdes Martin, Noelia Estache, Antonio Campos, Javier Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure |
| geographic_facet |
Latin America & Caribbean |
| relation |
Policy Research Working Paper;No. 2906 |
| description |
The authors provide empirical evidence
on the impact that private participation in infrastructure
has had on key macroeconomic variables in a sample of 21
Latin American countries from 1985-98. Specifically, they
look at the effects on GDP per capita, current public
expenditures, public investment, and private investment,
controlling for country effects and institutional factors.
The authors also investigate the relevance of the specific
contractual form of private participation contracts on these
variables and show differentiated effects according to
contract types. The results suggest that: 1) Private sector
involvement in utilities and transport have some, but not
impressive, positive effects on GDP per capita. 2) There is
some degree of crowding-out of private investment resulting
from greenfield projects in utilities, and delayed
crowding-in from concessions in transport. 3) There is
crowding-in of public investment by private participation in
utilities, while there is crowding-out by increased private
investment in transport. 4) Private participation in
utilities decreases recurrent expenditures, while in
transport it results in an increase. The net effect on the
public sector account is uncertain, but this uncertainty is
a major risk. The revelation of this risk may be the main
contribution of this paper since it is inconsistent with the
fiscal gains expected by many policymakers as they engage in
infrastructure privatization programs. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Trujillo, Lourdes Martin, Noelia Estache, Antonio Campos, Javier |
| author_facet |
Trujillo, Lourdes Martin, Noelia Estache, Antonio Campos, Javier |
| author_sort |
Trujillo, Lourdes |
| title |
Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure |
| title_short |
Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure |
| title_full |
Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure |
| title_fullStr |
Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure |
| title_full_unstemmed |
Macroeconomics Effects of Private Sector Participation in Latin America's Infrastructure |
| title_sort |
macroeconomics effects of private sector participation in latin america's infrastructure |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2002/10/2040833/macroeconomics-effects-private-sector-participation-latin-americas-infrastructure http://hdl.handle.net/10986/19213 |
| _version_ |
1764439371351588864 |