The Cost of Road Infrastructure in Low and Middle Income Countries

The connections between transport infrastructure and economic development have been extensively analyzed in previous research, but little is known about the cost of infrastructure investments in poor countries. This paper examines drivers of unit c...

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Main Authors:	Collier, Paul, Kirchberger, Martina, Söderbom, Måns
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	AUCTION TERRORISM ROAD DEVELOPMENT AVERAGE COSTS SUPERVISION EQUIPMENT PRICE LEVELS MATERIALS SEARCH INCOME CONSUMER PRICE INDICES TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS ROAD BUILDING GDP PER CAPITA INFORMATION JOINT VENTURE MONITORING POLITICAL ECONOMY WELFARE RISK PREMIUM INCENTIVES VARIABLES ROAD COSTS ROAD INFRASTRUCTURE HIGHWAY SYSTEM PRICE RETURNS TO SCALE MANAGEMENT SYSTEMS PC PAYMENTS PRODUCTION βα FUNCTION MAINTENANCE COSTS TRANSPORTATION INFRASTRUCTURE TRENDS DRIVERS OPEN ACCESS INCREASING RETURNS TO SCALE ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE TIME PERIODS LINK DATA ROAD COLLUSION COSTS DEVELOPMENT ECONOMICS ROAD NETWORK ROAD SECTOR TRANSPORT COMMERCIAL BUSINESS ECONOMIC FEASIBILITY EXCHANGE RATES TARGETS SCALE EFFECT PRODUCTIVITY INDUSTRIALIZATION INCREASING RETURNS PROCUREMENT PROCESS DRAINAGE CONNECTIVITY TRUE WEB INFORMATION NETWORK BUSINESS INFORMATION RURAL ROADS ROAD QUALITY PROCUREMENT PROCESSES ECONOMIC RESEARCH INFRASTRUCTURE TECHNOLOGY AUCTIONS DRIVING CONGESTION LEGAL ENFORCEMENT TRANSPORTATION FRAUD INSPECTION PRICE AUCTIONS PROCUREMENT WAGES TRANSPARENCY ECONOMETRIC ANALYSIS RESETTLEMENT TRANSPORT RESEARCH RESULTS VALUE CONGESTION COSTS CREDIT NETWORKS POPULATION DENSITY INFORMATION PROVIDERS BUSINESS INDICATORS MEASUREMENT PRICE TAKERS ROAD PROJECTS INFRASTRUCTURE PROJECTS PUBLIC WORKS HIGHWAYS ECONOMICS PRODUCTION FUNCTION ROAD EXPENDITURES ROADS RESULT FUNCTIONAL FORMS OVERHEAD COSTS ECONOMIC DEVELOPMENT HIGHWAY TRADE ICT RAILWAYS GDP THEORY COST OF TRANSPORT SECURITY ECONOMIES OF SCALE BUSINESS INVESTMENT NETWORK RAILROADS PERFORMANCE BUSINESS ENVIRONMENT FUEL LANES INVESTMENTS CONSUMER PRICE INDEX MISSING VALUES COSTS OF TRANSPORT ROAD CONDITIONS DATABASE TRANSPORT COSTS HIGH TRANSPORTATION OUTCOMES VEHICLE DRIVERS OUTSOURCING MIDDLE INCOME COUNTRIES PRICES MISSING DATA USER DEVELOPMENT POLICY FUTURE RESEARCH
Online Access:	http://documents.worldbank.org/curated/en/2015/09/24989040/cost-road-infrastructure-low-middle-income-countries http://hdl.handle.net/10986/22664

id	okr-10986-22664
recordtype	oai_dc
spelling	okr-10986-226642021-04-23T14:04:10Z The Cost of Road Infrastructure in Low and Middle Income Countries Collier, Paul Kirchberger, Martina Söderbom, Måns AUCTION TERRORISM ROAD DEVELOPMENT AVERAGE COSTS SUPERVISION EQUIPMENT PRICE LEVELS MATERIALS SEARCH INCOME CONSUMER PRICE INDICES TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS ROAD BUILDING GDP PER CAPITA INFORMATION JOINT VENTURE MONITORING POLITICAL ECONOMY WELFARE RISK PREMIUM INCENTIVES VARIABLES ROAD COSTS ROAD INFRASTRUCTURE HIGHWAY SYSTEM PRICE RETURNS TO SCALE MANAGEMENT SYSTEMS PC PAYMENTS PRODUCTION βα FUNCTION MAINTENANCE COSTS TRANSPORTATION INFRASTRUCTURE TRENDS DRIVERS OPEN ACCESS INCREASING RETURNS TO SCALE ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE TIME PERIODS LINK DATA ROAD COLLUSION COSTS DEVELOPMENT ECONOMICS ROAD NETWORK ROAD SECTOR TRANSPORT COMMERCIAL BUSINESS ECONOMIC FEASIBILITY EXCHANGE RATES TARGETS SCALE EFFECT PRODUCTIVITY INDUSTRIALIZATION INCREASING RETURNS PROCUREMENT PROCESS DRAINAGE CONNECTIVITY TRUE WEB INFORMATION NETWORK BUSINESS INFORMATION RURAL ROADS ROAD QUALITY PROCUREMENT PROCESSES ECONOMIC RESEARCH INFRASTRUCTURE TECHNOLOGY AUCTIONS DRIVING CONGESTION LEGAL ENFORCEMENT TRANSPORTATION FRAUD INSPECTION PRICE AUCTIONS PROCUREMENT WAGES TRANSPARENCY ECONOMETRIC ANALYSIS RESETTLEMENT TRANSPORT RESEARCH RESULTS VALUE CONGESTION COSTS CREDIT NETWORKS POPULATION DENSITY INFORMATION PROVIDERS BUSINESS INDICATORS MEASUREMENT PRICE TAKERS ROAD PROJECTS INFRASTRUCTURE PROJECTS PUBLIC WORKS HIGHWAYS ECONOMICS PRODUCTION FUNCTION ROAD EXPENDITURES ROADS RESULT FUNCTIONAL FORMS OVERHEAD COSTS ECONOMIC DEVELOPMENT HIGHWAY TRADE ICT RAILWAYS GDP THEORY COST OF TRANSPORT SECURITY ECONOMIES OF SCALE BUSINESS INVESTMENT NETWORK RAILROADS PERFORMANCE BUSINESS ENVIRONMENT FUEL LANES INVESTMENTS CONSUMER PRICE INDEX MISSING VALUES COSTS OF TRANSPORT ROAD CONDITIONS DATABASE TRANSPORT COSTS HIGH TRANSPORTATION OUTCOMES VEHICLE DRIVERS OUTSOURCING MIDDLE INCOME COUNTRIES PRICES MISSING DATA USER DEVELOPMENT POLICY FUTURE RESEARCH The connections between transport infrastructure and economic development have been extensively analyzed in previous research, but little is known about the cost of infrastructure investments in poor countries. This paper examines drivers of unit costs of construction and maintenance of transport infrastructure in low and middle income countries and documents that: (i) there is a large dispersion in unit costs for comparable road work activities; (ii) after accounting for environmental drivers of costs, residual unit costs are significantly higher in conflict countries; (iii) there is evidence that costs are higher in countries with higher levels of corruption; (iv) these effects are robust to controlling for a country’s public investment capacity and business environment. Our findings have implications for governments aiming to increase connectivity in poor countries. 2015-09-23T19:44:14Z 2015-09-23T19:44:14Z 2015-09 Working Paper http://documents.worldbank.org/curated/en/2015/09/24989040/cost-road-infrastructure-low-middle-income-countries http://hdl.handle.net/10986/22664 English en_US Policy Research Working Paper;No. 7408 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
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	AUCTION TERRORISM ROAD DEVELOPMENT AVERAGE COSTS SUPERVISION EQUIPMENT PRICE LEVELS MATERIALS SEARCH INCOME CONSUMER PRICE INDICES TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS ROAD BUILDING GDP PER CAPITA INFORMATION JOINT VENTURE MONITORING POLITICAL ECONOMY WELFARE RISK PREMIUM INCENTIVES VARIABLES ROAD COSTS ROAD INFRASTRUCTURE HIGHWAY SYSTEM PRICE RETURNS TO SCALE MANAGEMENT SYSTEMS PC PAYMENTS PRODUCTION βα FUNCTION MAINTENANCE COSTS TRANSPORTATION INFRASTRUCTURE TRENDS DRIVERS OPEN ACCESS INCREASING RETURNS TO SCALE ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE TIME PERIODS LINK DATA ROAD COLLUSION COSTS DEVELOPMENT ECONOMICS ROAD NETWORK ROAD SECTOR TRANSPORT COMMERCIAL BUSINESS ECONOMIC FEASIBILITY EXCHANGE RATES TARGETS SCALE EFFECT PRODUCTIVITY INDUSTRIALIZATION INCREASING RETURNS PROCUREMENT PROCESS DRAINAGE CONNECTIVITY TRUE WEB INFORMATION NETWORK BUSINESS INFORMATION RURAL ROADS ROAD QUALITY PROCUREMENT PROCESSES ECONOMIC RESEARCH INFRASTRUCTURE TECHNOLOGY AUCTIONS DRIVING CONGESTION LEGAL ENFORCEMENT TRANSPORTATION FRAUD INSPECTION PRICE AUCTIONS PROCUREMENT WAGES TRANSPARENCY ECONOMETRIC ANALYSIS RESETTLEMENT TRANSPORT RESEARCH RESULTS VALUE CONGESTION COSTS CREDIT NETWORKS POPULATION DENSITY INFORMATION PROVIDERS BUSINESS INDICATORS MEASUREMENT PRICE TAKERS ROAD PROJECTS INFRASTRUCTURE PROJECTS PUBLIC WORKS HIGHWAYS ECONOMICS PRODUCTION FUNCTION ROAD EXPENDITURES ROADS RESULT FUNCTIONAL FORMS OVERHEAD COSTS ECONOMIC DEVELOPMENT HIGHWAY TRADE ICT RAILWAYS GDP THEORY COST OF TRANSPORT SECURITY ECONOMIES OF SCALE BUSINESS INVESTMENT NETWORK RAILROADS PERFORMANCE BUSINESS ENVIRONMENT FUEL LANES INVESTMENTS CONSUMER PRICE INDEX MISSING VALUES COSTS OF TRANSPORT ROAD CONDITIONS DATABASE TRANSPORT COSTS HIGH TRANSPORTATION OUTCOMES VEHICLE DRIVERS OUTSOURCING MIDDLE INCOME COUNTRIES PRICES MISSING DATA USER DEVELOPMENT POLICY FUTURE RESEARCH
spellingShingle	AUCTION TERRORISM ROAD DEVELOPMENT AVERAGE COSTS SUPERVISION EQUIPMENT PRICE LEVELS MATERIALS SEARCH INCOME CONSUMER PRICE INDICES TRANSPORT INFRASTRUCTURE TRANSPORTATION COSTS ROAD BUILDING GDP PER CAPITA INFORMATION JOINT VENTURE MONITORING POLITICAL ECONOMY WELFARE RISK PREMIUM INCENTIVES VARIABLES ROAD COSTS ROAD INFRASTRUCTURE HIGHWAY SYSTEM PRICE RETURNS TO SCALE MANAGEMENT SYSTEMS PC PAYMENTS PRODUCTION βα FUNCTION MAINTENANCE COSTS TRANSPORTATION INFRASTRUCTURE TRENDS DRIVERS OPEN ACCESS INCREASING RETURNS TO SCALE ECONOMIC ACTIVITY DEVELOPMENT INSTITUTIONS VEHICLE TIME PERIODS LINK DATA ROAD COLLUSION COSTS DEVELOPMENT ECONOMICS ROAD NETWORK ROAD SECTOR TRANSPORT COMMERCIAL BUSINESS ECONOMIC FEASIBILITY EXCHANGE RATES TARGETS SCALE EFFECT PRODUCTIVITY INDUSTRIALIZATION INCREASING RETURNS PROCUREMENT PROCESS DRAINAGE CONNECTIVITY TRUE WEB INFORMATION NETWORK BUSINESS INFORMATION RURAL ROADS ROAD QUALITY PROCUREMENT PROCESSES ECONOMIC RESEARCH INFRASTRUCTURE TECHNOLOGY AUCTIONS DRIVING CONGESTION LEGAL ENFORCEMENT TRANSPORTATION FRAUD INSPECTION PRICE AUCTIONS PROCUREMENT WAGES TRANSPARENCY ECONOMETRIC ANALYSIS RESETTLEMENT TRANSPORT RESEARCH RESULTS VALUE CONGESTION COSTS CREDIT NETWORKS POPULATION DENSITY INFORMATION PROVIDERS BUSINESS INDICATORS MEASUREMENT PRICE TAKERS ROAD PROJECTS INFRASTRUCTURE PROJECTS PUBLIC WORKS HIGHWAYS ECONOMICS PRODUCTION FUNCTION ROAD EXPENDITURES ROADS RESULT FUNCTIONAL FORMS OVERHEAD COSTS ECONOMIC DEVELOPMENT HIGHWAY TRADE ICT RAILWAYS GDP THEORY COST OF TRANSPORT SECURITY ECONOMIES OF SCALE BUSINESS INVESTMENT NETWORK RAILROADS PERFORMANCE BUSINESS ENVIRONMENT FUEL LANES INVESTMENTS CONSUMER PRICE INDEX MISSING VALUES COSTS OF TRANSPORT ROAD CONDITIONS DATABASE TRANSPORT COSTS HIGH TRANSPORTATION OUTCOMES VEHICLE DRIVERS OUTSOURCING MIDDLE INCOME COUNTRIES PRICES MISSING DATA USER DEVELOPMENT POLICY FUTURE RESEARCH Collier, Paul Kirchberger, Martina Söderbom, Måns The Cost of Road Infrastructure in Low and Middle Income Countries
relation	Policy Research Working Paper;No. 7408
description	The connections between transport infrastructure and economic development have been extensively analyzed in previous research, but little is known about the cost of infrastructure investments in poor countries. This paper examines drivers of unit costs of construction and maintenance of transport infrastructure in low and middle income countries and documents that: (i) there is a large dispersion in unit costs for comparable road work activities; (ii) after accounting for environmental drivers of costs, residual unit costs are significantly higher in conflict countries; (iii) there is evidence that costs are higher in countries with higher levels of corruption; (iv) these effects are robust to controlling for a country’s public investment capacity and business environment. Our findings have implications for governments aiming to increase connectivity in poor countries.
format	Working Paper
author	Collier, Paul Kirchberger, Martina Söderbom, Måns
author_facet	Collier, Paul Kirchberger, Martina Söderbom, Måns
author_sort	Collier, Paul
title	The Cost of Road Infrastructure in Low and Middle Income Countries
title_short	The Cost of Road Infrastructure in Low and Middle Income Countries
title_full	The Cost of Road Infrastructure in Low and Middle Income Countries
title_fullStr	The Cost of Road Infrastructure in Low and Middle Income Countries
title_full_unstemmed	The Cost of Road Infrastructure in Low and Middle Income Countries
title_sort	cost of road infrastructure in low and middle income countries
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/09/24989040/cost-road-infrastructure-low-middle-income-countries http://hdl.handle.net/10986/22664
_version_	1764451707970912256

The Cost of Road Infrastructure in Low and Middle Income Countries

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