IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10650.html
   My bibliography  Save this paper

Spatial Misallocation of Complementary Infrastructure Investment : Evidence from Brazil

Author

Listed:
  • Pérez-Sebastián,Fidel
  • Serrano Quintero,Rafael
  • Steinbuks,Jevgenijs

Abstract

How does the misallocation of complementary public capital affect the spatial organization of economic activity To answer this question, this paper endogenizes the government's decision to invest in the transport and electricity networks. A novel multi-sector quantitative spatial equilibrium model incorporates the quality of the electric power and the road transportation infrastructure networks, which determine sectoral productivities and trade costs. Simulation results for the Brazilian economy point to significant welfare gains from reallocating infrastructure investment. Spatial and fiscal complementarities in heterogeneous infrastructure provision determine a sizeable part of those gains. Misallocation of both infrastructure investments is positively associated with local political support for the incumbent authority.

Suggested Citation

  • Pérez-Sebastián,Fidel & Serrano Quintero,Rafael & Steinbuks,Jevgenijs, 2023. "Spatial Misallocation of Complementary Infrastructure Investment : Evidence from Brazil," Policy Research Working Paper Series 10650, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10650
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/099822112182319219/pdf/IDU009479c3106f960481d0b85a02738d5c6f7aa.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
    2. Gertler, Paul J. & Gonzalez-Navarro, Marco & Gračner, Tadeja & Rothenberg, Alexander D., 2024. "Road maintenance and local economic development: Evidence from Indonesia’s highways," Journal of Urban Economics, Elsevier, vol. 143(C).
    3. Gallen, Trevor S. & Winston, Clifford, 2021. "Transportation capital and its effects on the U.S. economy: A general equilibrium approach," Journal of Macroeconomics, Elsevier, vol. 69(C).
    4. Kanbur, Ravi & Venables, Anthony J., 2005. "SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project," Working Papers 127127, Cornell University, Department of Applied Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feng, Qu & Wu, Guiying Laura, 2018. "On the reverse causality between output and infrastructure: The case of China," Economic Modelling, Elsevier, vol. 74(C), pages 97-104.
    2. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, August.
    3. MORITA, Hiroshi, 2024. "New Approach to Estimating the Productivity of Public Capital : Evidence from 22 OECD Countries," Discussion paper series HIAS-E-141, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    4. Sunderlin, William D. & Dewi, Sonya & Puntodewo, Atie & Müller, Daniel & Angelsen, Arild & Epprecht, Michael, 2008. "Why forests are important for global poverty alleviation: A spatial explanation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(2).
    5. Güneş Aşık & Ulaş Karakoç & Şevket Pamuk, 2023. "Regional inequalities and the West–East divide in Turkey since 1913," Economic History Review, Economic History Society, vol. 76(4), pages 1305-1332, November.
    6. World Bank, 2004. "Sri Lanka - Reshaping Economic Geography : Connecting People to Prosperity," World Bank Publications - Books, The World Bank Group, number 21549.
    7. Bird, Julia & Straub, Stéphane, 2020. "The Brasília experiment: The heterogeneous impact of road access on spatial development in Brazil," World Development, Elsevier, vol. 127(C).
    8. Luis Bauluz & Sebastien Breau & Pawel Bukowski & Mark Fransham & Annie Seong Lee & Neil Lee & Margarita Lopez Forero & Clement Malgouyres & Filip Novokmet & Moritz Schularick & Gregory Verdugo, 2023. "Spatial wage inequality in North America and Western Europe: changes between and within local labour markets 1975-2019," CEP Discussion Papers dp1941, Centre for Economic Performance, LSE.
    9. Ward Romp & Jakob De Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 6-52, April.
    10. Wenxiao WANG & Shandre THANGAVELU, 2024. "Urban Agglomeration, Firm Performance, and Global Value Chain in China," Working Papers DP-2024-14, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Joanna Mackiewicz-Łyziak, 2010. "Wpływ infrastruktury na produktywność w gospodarce Polski," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 41-61.
    12. Roberto Ezcurra & Andrés Rodríguez-Pose, 2017. "Does ethnic segregation matter for spatial inequality?," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1149-1178.
    13. Luisa Schneider & Daniela Wech & Matthias Wrede, 2022. "Political alignment and project funding," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1561-1589, December.
    14. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    15. Yang, Xiaoliang & Barros, Lucy & Matthews, Kent & Meenagh, David, 2024. "The dynamics of redistribution, inequality and growth across China’s regions," Journal of Policy Modeling, Elsevier, vol. 46(3), pages 613-637.
    16. Jussila Hammes, Johanna, 2011. "Path dependence: Biofuels policy under uncertainty about greenhouse gas emissions," Working Papers 2011:1, Swedish National Road & Transport Research Institute (VTI).
    17. Hugh Goldsmith, 2014. "The Long-Run Evolution of Infrastructure Services," CESifo Working Paper Series 5073, CESifo.
    18. Silvia Bertarelli, 2006. "Public capital and growth," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
    19. Pellervo Hamalainen, 2009. "Review of literature on the productivity of public capital," Discussion Papers 55, Aboa Centre for Economics.
    20. Hamidreza Rabiei‐Dastjerdi & Stephen A. Matthews, 2021. "Who gets what, where, and how much? Composite index of spatial inequality for small areas in Tehran," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 191-205, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.