Infrastructure deficit will mar Chile competitiveness

2017 ◽  
Keyword(s):  
Income Distribution ◽  
Public Private Partnerships ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Public Infrastructure ◽  
Content Type ◽  
Social Segregation ◽  
Unequal Income Distribution ◽  
Lock In

Subject Public infrastructure weaknesses. Significance It is increasingly apparent that public infrastructure in Chile is lagging behind the country’s needs, undermining the competitiveness of the exports that drive its economy, hampering the development of sectors such as agriculture and contributing to social segregation. With fiscal resources constrained by sluggish GDP growth, attention has again turned to public-private partnerships (PPPs) as a possible solution to infrastructure gaps. Impacts Infrastructure gaps help lock in Chile’s highly unequal income distribution. According to the Chilean Chamber of Construction, a 10.0% increase in infrastructure investment would boost GDP by 1.15%. Narrowing the country’s infrastructure gaps will be a key challenge for the new administration that takes office in March 2018.

scholarly journals Government public infrastructure investment and economic performance in Spain (1980-2016)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Perez-Montiel ◽  
Carles Manera
Keyword(s):  
Public Investment ◽  
Infrastructure Investment ◽  
Annual Data ◽  
Public Infrastructure ◽  
Cross Sectional ◽  
Content Type ◽  
Autonomous Communities ◽  
Vector Autoregressive ◽  
Acyclic Graphs ◽  
Multiplier Effects

Purpose The authors estimate the multiplier effect of government public infrastructure investment in Spain. This paper aims to use annual data of the 17 Spanish autonomous communities for the 1980–2016 period. Design/methodology/approach The authors use dynamic acyclic graphs and the heterogeneous panel structural vector autoregressive (P-SVAR) method of Pedroni (2013). This method is robust to cross-sectional heterogeneity and dependence, which are present in the data. Findings The findings suggest that an increase in the level of government public infrastructure investment generates a positive and persistent effect on the level of output. Five years after the fiscal expansion, the multiplier effects of government public infrastructure investment reach values above one. This confirms that government public infrastructure investment expansions have Keynesian effects. The authors also find that the multiplier effects differ between autonomous communities with above-average and below-average GDP per capita. Originality/value To the best of the authors’ knowledge, no research uses dynamic acyclic graphs and heterogeneous P-SVAR techniques to estimate fiscal multipliers of government public investment in Spain by using subnational data.

Does public investment crowd-out private investment in India

2017 ◽  
Vol 9 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Shanmugam Muthu
Keyword(s):  
Public Investment ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Public And Private ◽  
Content Type ◽  
Macroeconomic Uncertainty ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the crowding-in or crowding-out relationship between public and private investment in India. Design/methodology/approach The autoregressive distributed lag (ARDL) bounds testing approach is used to estimate the long run relationship between public and private investment using annual data from 1971-1972 to 2009-2010. Findings Based on the empirical findings, it is observed that aggregate public investment has a positive effect on private investment both in the long run and the short run. In contrast to the findings of previous studies, no significant impact of public infrastructure investment on private investments is found in the long run, while non-infrastructure investment has a positive impact on private investment in the short run. Among the various categories of infrastructure sector, a positive and significant impact in the case of electricity, gas and water supply is observed. Similarly, the result indicates that public investment in machinery and equipment and construction have substantially influenced the private sector machinery and equipment in the long run and the short run. In the case of the role of macroeconomic uncertainty, the results find a negative and significant impact on private investment and the impact is higher in the short run than in the long run. Originality/value The present study extends the literature in three important ways: First, the study attempts to capture heterogeneity of public investment as well as disaggregate effects of two different categories of public infrastructure on private investment. The extent to which two different types of public assets impact the private investment in machinery and equipment investment is also examined. Second, ARDL model is used to examine the long-run relationship between public and private investment. Third, the study incorporates macroeconomic uncertainty into the empirical analysis to examine the role of macroeconomic volatility in determining private investment decision.

Public infrastructure investment and fiscal sustainability in Latin America: incompatible goals?

2014 ◽  
Vol 41 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Luis Carranza ◽  
Christian Daude ◽  
Angel Melguizo
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Public Investment ◽  
Fiscal Rules ◽  
Infrastructure Investment ◽  
Fiscal Consolidation ◽  
Public Infrastructure ◽  
Content Type ◽  
Fiscal Space

Purpose – This paper aims to understand the relationship in developing countries between fiscal consolidation and public investment – a flexible part of the budget that is easier to cut during consolidation effort, but with potentially negative growth effects. Analyzing in detail the case of Peru, the paper explores alternative fiscal rules and frameworks that might help create fiscal space for infrastructure investment. Design/methodology/approach – The paper analyses trends in public and total infrastructure investment in six large Latin American economies, in the light of fiscal developments since the early 1980s. In particular, the paper explores the association between fiscal consolidations (improvements in the structural fiscal balance) and public infrastructure investment rates. In the second part, the paper analyzes recent changes in the fiscal framework of Peru and shows how they were conductive in creating additional fiscal space. Findings – The authors argue that post-crisis fiscal frameworks, notably fiscal rules that are increasingly popular in the region, should not only consolidate the recent progress towards debt sustainability, but also create the fiscal space to close these infrastructure gaps. These points are illustrated in a detailed account of recent developments in the fiscal framework and public investment in the Peruvian case. Originality/value – The paper contributes new evidence to the literature on fiscal consolidation and the composition of government expenditures. While the literature based on evidence from the 1990s has argued that fiscal consolidation plans in Latin America have almost always led to a significant reduction in public infrastructure investment, the paper finds less clear cut evidence when extending the analysis backwards (1980s) and forwards (2000s). The example of the case of Peru is used to explore fiscal institutions and rules that might be useful for other developing countries that face important infrastructure gaps.

Weak consumption may thwart Slovak growth plans

2016 ◽  
Keyword(s):  
Infrastructure Investment ◽  
Gdp Growth ◽  
Industrial Output ◽  
Short Term ◽  
Fiscal Deficits ◽  
Consumption Growth ◽  
Content Type ◽  
Low Levels ◽  
The Government ◽  
The Eu

Subject The government's latest GDP expectations for 2016-19. Significance On September 19, days before surviving a parliamentary no-confidence vote, the government announced GDP projections for 2016-19, based on improvements in consumption growth and the labour market, where registered unemployment hovers at historically low levels. Despite its weakened position following the recent departure of junior coalition partner Siet, Smer-Social Democracy (SD) is upbeat about the prospects for robust GDP growth in 2016, revising its forecast upwards to 3.6% from 3.2%. Impacts Industrial output, GDP and inflationary pressures may pick up post-2018, as consumers spend more and auto industry investments create jobs. The government may miss its targets in the short term, but fiscal deficits should remain below the EU limit of 3% of GDP in 2016-18. More public-private partnerships, modelled on the Bratislava ring-road, plus EU funding, may support infrastructure investment after 2017.

Colombia’s infrastructure expansion faces major delays

2017 ◽  
Keyword(s):  
Growth Rates ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Election Campaign ◽  
Infrastructure Projects ◽  
Caribbean Coast ◽  
Content Type ◽  
Investment Opportunities ◽  
The Caribbean ◽  
New Infrastructure

Significance The claims follow the ANI’s announcement on February 22 that it would cancel the contract of an Odebrecht-led consortium to build the Ruta del Sol 2 highway, linking central Colombia to the Caribbean coast. Impacts The risk of potentially intrusive investigations will remain high for firms with commercial or contractual links to Odebrecht. Delays in completion of infrastructure projects could bring Colombia’s GDP growth rates for 2017 below the current forecasts of 2.7%. Later in the year, new infrastructure investment opportunities will open as corruptly awarded contracts are resubmitted for tender. Allegations that Santos’s 2014 election campaign received Odebrecht funding could harm his Party of the U in the 2018 election.

Qatar can ride out gas price collapse

2016 ◽  
Keyword(s):  
Liquefied Natural Gas ◽  
Public Infrastructure ◽  
Pricing Policy ◽  
Content Type ◽  
Spot Prices ◽  
Oil Market ◽  
Lock In ◽  
Gas Price ◽  
Change Concerns

Subject Qatar gas pricing policy. Significance With LNG spot prices dropping in parallel with oil prices, buyers have pressed Qatar to renegotiate the terms of long-term liquefied natural gas (LNG) contracts. In response, Qatar has proved surprisingly flexible, particularly to India's Petronet, seeking to lock in long-term relationships with customers ahead of a potential glut in supply that will put pressure on LNG prices whatever happens in the oil market. Impacts Lower LNG revenue will put immediate pressure on Qatar's public finances. Some major public infrastructure projects may be scaled back or delayed, impacting contractors. LNG suppliers with less market clout than Qatar are likely to face even greater pressure on their contracts. Declining supply outlook and climate change concerns may let Qatar find itself in an enviable position once again by 2020 or sooner.

A bigger bang for the public buck

2018 ◽  
Vol 30 (3) ◽  
pp. 270-285 ◽  
Author(s):  
Can Chen
Keyword(s):  
Best Practice ◽  
Transportation Infrastructure ◽  
Infrastructure Investment ◽  
State Governments ◽  
Public Infrastructure ◽  
Content Type ◽  
Highway Infrastructure ◽  
State Highway ◽  
Parametric Data ◽  
Low Efficiency

PurposeIt is well known that public infrastructure, particularly the transportation infrastructure sector, is notorious for low efficiency, spending waste and corruption. Achieving the efficiency of public infrastructure investment is a crucial element to improve the current deteriorating condition of American transportation infrastructure system. The paper aims to discuss these issues.Design/methodology/approachThis research utilizes an input-oriented, variable return to scale non-parametric data envelopment analysis to estimate the relative cost efficiency of highway infrastructure investment among the 48 American continental states from 1995 to 2009.FindingsThe empirical results reveal that there is a large efficiency variation among state highway infrastructure systems.Practical implicationsIn addition, state governments on average reach 95.8 percent of the efficiency of their best practice peers in terms of providing quality highway infrastructure outcomes.

External factors will shape Uganda's near-term growth

2016 ◽  
Keyword(s):  
International Markets ◽  
Infrastructure Investment ◽  
Public Infrastructure ◽  
Content Type ◽  
Banking Regulations ◽  
2016 Election ◽  
Near Term ◽  
The Government ◽  
Will Force ◽  
Economic Outlook

Subject Ugandan economic outlook. Significance Despite having overcome the 2016 election with relatively little economic turbulence, Uganda's growth has since failed to accelerate despite monetary easing. The economy is still vulnerable to external economic shocks. The government is investing in public infrastructure to reduce this weakness in the longer-term. Impacts Selecting, sequencing and implementing choices of large projects will determine the success of public infrastructure investment. Insufficient increases in tax collection will force the government to borrow more from domestic and international markets. Kenya's experience with a new interest rate cap law could influence Uganda's banking regulations.

Costa Rica tax triumph will drive Alvarado’s ambition

2018 ◽  
Keyword(s):  
International Institutions ◽  
Tax Reform ◽  
Infrastructure Investment ◽  
Fiscal Deficit ◽  
Fiscal Consolidation ◽  
Public Infrastructure ◽  
Content Type ◽  
Investment Plan ◽  
Fiscal Reforms ◽  
The Government

Subject Tax reform. Significance President Carlos Alvarado's controversial and long-awaited tax reform passed on December 3. The new measures should help to improve Costa Rica’s fiscal situation, particularly curbing the widening fiscal deficit, and will be welcomed by investors and international institutions. Impacts With the reforms now looking certain, protest fatigue will set in, and union demonstrations will die down. The legislature is likely to rally behind Alvarado’s next initiative -- a public infrastructure investment plan. The government may try to pass supplementary fiscal reforms in 2019 to support fiscal consolidation.

Construction of infrastructure index for Indonesia

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sahminan Sahminan ◽  
Oki Hermansyah ◽  
Robbi Nur Rakhman
Keyword(s):  
Principal Component ◽  
Gdp Per Capita ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Infrastructure Development ◽  
Positive Relation ◽  
Content Type ◽  
Increasing Trend ◽  
Per Capita ◽  
Economic Infrastructure

Purpose The purpose of this paper is to construct indices on Indonesia’s economic infrastructure. The components of infrastructure include transportation, communications and electricity. In constructing the indices, the authors use the longest available data covering the period 1970-2015. The indices of each component of infrastructure are aggregated linearly with the weights calculated using principal component analysis (PCA). The infrastructure index for Indonesia has had a positive increasing trend since 1970, particularly supported by the increase in the infrastructure indices of electricity and telecommunication. Meanwhile, the infrastructure index of transportation has been relatively stable. The infrastructure index constructed shows positive relation with Indonesia’s GDP growth and GDP per capita. Design/methodology/approach In constructing the indices, the authors use the longest available data covering the period 1970-2015. The indices of each components of infrastructure are aggregated linearly with the weights calculated using PCA. Findings The infrastructure index for Indonesia has a positive increasing trend since 1970, particularly supported by the increase in the infrastructure indices of electricity and telecommunication. Meanwhile, the infrastructure index of transportation has been relatively stable. The infrastructure index constructed shows positive relation with Indonesia’s GDP growth and GDP per capita. Originality/value The novelty of this research is a construction of the infrastructure index for Indonesia. The infrastructure index is important to benchmark the level of infrastructure development and to understand its connection to economic growth. It is also an important barometer used by policymakers for infrastructure investment and planning purposes.

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