Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus
Infrastructure investment is a central part of the stimulus plans of the Latin America and the Caribbean (LAC) region as it confronts the growing financial crisis. This paper estimates the potential effects on direct, indirect, and induced employme...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2009/07/19516967/crisis-lac-infrastructure-investment-employment-expectations-stimulus http://hdl.handle.net/10986/18718 |
| id |
okr-10986-18718 |
|---|---|
| recordtype |
oai_dc |
| 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 |
ADVANCED ECONOMIES ADVISERS AFFORDABILITY AGGREGATE DEMAND AIRPORTS ASSET VALUE ASSET VALUES BAILOUT BAILOUTS BANK POLICY BIASES BIDS BORROWING CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL STOCKS CARBON EMISSIONS CASH TRANSFER CASH TRANSFERS COMMERCIAL BANKS COMMERCIAL LENDING COMMODITY PRICES COMPETITIVE BIDDING CONSUMER CONFIDENCE CONSUMER EXPENDITURES CORRUPTION DAY LABORERS DEBT DEBT FINANCING DEFICITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DISBURSEMENT DISBURSEMENTS DRIVING ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMICS ELASTICITY EMISSIONS EMPLOYMENT EMPLOYMENT GOALS ENVIRONMENTAL IMPACTS ENVIRONMENTAL SUSTAINABILITY EXPENDITURE EXPENDITURES FARMERS FEDERAL RESERVE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FISCAL POLICIES FISCAL POLICY GLOBAL ECONOMY GOVERNMENT DEBT GOVERNMENT GUARANTEES GOVERNMENT INVESTMENT GOVERNMENT REVENUE GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HIGH UNEMPLOYMENT HIGHWAY HIGHWAY ADMINISTRATION HIGHWAY CONSTRUCTION HIGHWAY PROJECTS HOUSEHOLDS HUMAN DEVELOPMENT INCOME INDIRECT LABOR COSTS INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCE INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INFRASTRUCTURE REHABILITATION INITIAL INVESTMENT INSURERS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT DECISION INVESTMENT PROJECTS INVESTMENTS IN HIGHWAYS LABOR MARKET LIGHT RAIL LIQUIDITY MACROECONOMIC EFFECTS MARKET DEVELOPMENT MARKET EFFICIENCY MARKET INEFFICIENCIES MICRO-ENTERPRISES MINIMUM WAGE MINIMUM WAGES MODES OF TRANSPORT MONETARY POLICY MORTGAGE MULTIPLIER EFFECT OPERATING COSTS OPPORTUNITY COST OUTPUTS PENSION POLITICAL ECONOMY PRIVATE CAPITAL PRIVATE FINANCING PRODUCTIVITY PUBLIC HOUSING PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING PUBLIC WORKS RAIL RECESSION RECESSIONS REINVESTMENT RESERVES RETURN ROAD ROAD INFRASTRUCTURE ROAD INVESTMENT ROAD MAINTENANCE ROAD MANAGEMENT RURAL INFRASTRUCTURE RURAL ROADS SAFETY SAFETY NET SANITATION SMART TRANSPORTATION SOLVENCY STOCK MARKETS STOCKS SUPPLY CHAIN TAX TAX CREDITS TELECOMMUNICATIONS TRANSPORT TRANSPORT EQUIPMENT TRANSPORT POLICY TRANSPORT POLICY INSTITUTE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION POLICY TRANSPORTATION SPENDING TRUE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT LEVELS UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS URBAN ROADS VILLAGES WAGES WORKING HOURS |
| spellingShingle |
ADVANCED ECONOMIES ADVISERS AFFORDABILITY AGGREGATE DEMAND AIRPORTS ASSET VALUE ASSET VALUES BAILOUT BAILOUTS BANK POLICY BIASES BIDS BORROWING CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL STOCKS CARBON EMISSIONS CASH TRANSFER CASH TRANSFERS COMMERCIAL BANKS COMMERCIAL LENDING COMMODITY PRICES COMPETITIVE BIDDING CONSUMER CONFIDENCE CONSUMER EXPENDITURES CORRUPTION DAY LABORERS DEBT DEBT FINANCING DEFICITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DISBURSEMENT DISBURSEMENTS DRIVING ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMICS ELASTICITY EMISSIONS EMPLOYMENT EMPLOYMENT GOALS ENVIRONMENTAL IMPACTS ENVIRONMENTAL SUSTAINABILITY EXPENDITURE EXPENDITURES FARMERS FEDERAL RESERVE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FISCAL POLICIES FISCAL POLICY GLOBAL ECONOMY GOVERNMENT DEBT GOVERNMENT GUARANTEES GOVERNMENT INVESTMENT GOVERNMENT REVENUE GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HIGH UNEMPLOYMENT HIGHWAY HIGHWAY ADMINISTRATION HIGHWAY CONSTRUCTION HIGHWAY PROJECTS HOUSEHOLDS HUMAN DEVELOPMENT INCOME INDIRECT LABOR COSTS INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCE INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INFRASTRUCTURE REHABILITATION INITIAL INVESTMENT INSURERS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT DECISION INVESTMENT PROJECTS INVESTMENTS IN HIGHWAYS LABOR MARKET LIGHT RAIL LIQUIDITY MACROECONOMIC EFFECTS MARKET DEVELOPMENT MARKET EFFICIENCY MARKET INEFFICIENCIES MICRO-ENTERPRISES MINIMUM WAGE MINIMUM WAGES MODES OF TRANSPORT MONETARY POLICY MORTGAGE MULTIPLIER EFFECT OPERATING COSTS OPPORTUNITY COST OUTPUTS PENSION POLITICAL ECONOMY PRIVATE CAPITAL PRIVATE FINANCING PRODUCTIVITY PUBLIC HOUSING PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING PUBLIC WORKS RAIL RECESSION RECESSIONS REINVESTMENT RESERVES RETURN ROAD ROAD INFRASTRUCTURE ROAD INVESTMENT ROAD MAINTENANCE ROAD MANAGEMENT RURAL INFRASTRUCTURE RURAL ROADS SAFETY SAFETY NET SANITATION SMART TRANSPORTATION SOLVENCY STOCK MARKETS STOCKS SUPPLY CHAIN TAX TAX CREDITS TELECOMMUNICATIONS TRANSPORT TRANSPORT EQUIPMENT TRANSPORT POLICY TRANSPORT POLICY INSTITUTE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION POLICY TRANSPORTATION SPENDING TRUE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT LEVELS UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS URBAN ROADS VILLAGES WAGES WORKING HOURS Schwartz, Jordan Andres, Luis Dragoiu, Georgeta Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus |
| geographic_facet |
Latin America & Caribbean Caribbean Latin America |
| relation |
LCSSD occasional paper series;no. 1 |
| description |
Infrastructure investment is a central
part of the stimulus plans of the Latin America and the
Caribbean (LAC) region as it confronts the growing financial
crisis. This paper estimates the potential effects on
direct, indirect, and induced employment for different types
of infrastructure projects with LAC-specific variables. The
analysis finds that the direct and indirect short-term
employment generation potential of infrastructure capital
investment projects may be considerable averaging around
40,000 annual jobs per United States (U.S.) 1 billion
dollars in LAC, depending upon such variables as the mix of
subsectors in the investment program; the technologies
deployed; local wages for skilled and unskilled labor; and
the degrees of leakages to imported inputs. While these
numbers do not account for substitution effect, they are
built around an assumed basket of investments that crosses
infrastructure sectors most of which are not
employment-maximizing. Albeit limited in scope, rural road
maintenance projects may employ 200,000 to 500,000
annualized direct jobs for every U.S. 1 billion dollars
spent. The paper also describes the potential risks to
effective infrastructure investment in an environment of
crisis including sorting and planning contradictions,
delayed implementation and impact, affordability, and corruption. |
| format |
Publications & Research :: Working Paper |
| author |
Schwartz, Jordan Andres, Luis Dragoiu, Georgeta |
| author_facet |
Schwartz, Jordan Andres, Luis Dragoiu, Georgeta |
| author_sort |
Schwartz, Jordan |
| title |
Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus |
| title_short |
Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus |
| title_full |
Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus |
| title_fullStr |
Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus |
| title_full_unstemmed |
Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus |
| title_sort |
crisis in lac : infrastructure investment, employment and the expectations of stimulus |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2009/07/19516967/crisis-lac-infrastructure-investment-employment-expectations-stimulus http://hdl.handle.net/10986/18718 |
| _version_ |
1764442440310194176 |
| spelling |
okr-10986-187182021-04-23T14:03:48Z Crisis in LAC : Infrastructure Investment, Employment and the Expectations of Stimulus Schwartz, Jordan Andres, Luis Dragoiu, Georgeta ADVANCED ECONOMIES ADVISERS AFFORDABILITY AGGREGATE DEMAND AIRPORTS ASSET VALUE ASSET VALUES BAILOUT BAILOUTS BANK POLICY BIASES BIDS BORROWING CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL STOCKS CARBON EMISSIONS CASH TRANSFER CASH TRANSFERS COMMERCIAL BANKS COMMERCIAL LENDING COMMODITY PRICES COMPETITIVE BIDDING CONSUMER CONFIDENCE CONSUMER EXPENDITURES CORRUPTION DAY LABORERS DEBT DEBT FINANCING DEFICITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DISBURSEMENT DISBURSEMENTS DRIVING ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMICS ELASTICITY EMISSIONS EMPLOYMENT EMPLOYMENT GOALS ENVIRONMENTAL IMPACTS ENVIRONMENTAL SUSTAINABILITY EXPENDITURE EXPENDITURES FARMERS FEDERAL RESERVE FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FISCAL POLICIES FISCAL POLICY GLOBAL ECONOMY GOVERNMENT DEBT GOVERNMENT GUARANTEES GOVERNMENT INVESTMENT GOVERNMENT REVENUE GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HIGH UNEMPLOYMENT HIGHWAY HIGHWAY ADMINISTRATION HIGHWAY CONSTRUCTION HIGHWAY PROJECTS HOUSEHOLDS HUMAN DEVELOPMENT INCOME INDIRECT LABOR COSTS INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCE INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INFRASTRUCTURE REHABILITATION INITIAL INVESTMENT INSURERS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT DECISION INVESTMENT PROJECTS INVESTMENTS IN HIGHWAYS LABOR MARKET LIGHT RAIL LIQUIDITY MACROECONOMIC EFFECTS MARKET DEVELOPMENT MARKET EFFICIENCY MARKET INEFFICIENCIES MICRO-ENTERPRISES MINIMUM WAGE MINIMUM WAGES MODES OF TRANSPORT MONETARY POLICY MORTGAGE MULTIPLIER EFFECT OPERATING COSTS OPPORTUNITY COST OUTPUTS PENSION POLITICAL ECONOMY PRIVATE CAPITAL PRIVATE FINANCING PRODUCTIVITY PUBLIC HOUSING PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SPENDING PUBLIC WORKS RAIL RECESSION RECESSIONS REINVESTMENT RESERVES RETURN ROAD ROAD INFRASTRUCTURE ROAD INVESTMENT ROAD MAINTENANCE ROAD MANAGEMENT RURAL INFRASTRUCTURE RURAL ROADS SAFETY SAFETY NET SANITATION SMART TRANSPORTATION SOLVENCY STOCK MARKETS STOCKS SUPPLY CHAIN TAX TAX CREDITS TELECOMMUNICATIONS TRANSPORT TRANSPORT EQUIPMENT TRANSPORT POLICY TRANSPORT POLICY INSTITUTE TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION POLICY TRANSPORTATION SPENDING TRUE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT LEVELS UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS URBAN ROADS VILLAGES WAGES WORKING HOURS Infrastructure investment is a central part of the stimulus plans of the Latin America and the Caribbean (LAC) region as it confronts the growing financial crisis. This paper estimates the potential effects on direct, indirect, and induced employment for different types of infrastructure projects with LAC-specific variables. The analysis finds that the direct and indirect short-term employment generation potential of infrastructure capital investment projects may be considerable averaging around 40,000 annual jobs per United States (U.S.) 1 billion dollars in LAC, depending upon such variables as the mix of subsectors in the investment program; the technologies deployed; local wages for skilled and unskilled labor; and the degrees of leakages to imported inputs. While these numbers do not account for substitution effect, they are built around an assumed basket of investments that crosses infrastructure sectors most of which are not employment-maximizing. Albeit limited in scope, rural road maintenance projects may employ 200,000 to 500,000 annualized direct jobs for every U.S. 1 billion dollars spent. The paper also describes the potential risks to effective infrastructure investment in an environment of crisis including sorting and planning contradictions, delayed implementation and impact, affordability, and corruption. 2014-06-23T15:57:30Z 2014-06-23T15:57:30Z 2009-07 http://documents.worldbank.org/curated/en/2009/07/19516967/crisis-lac-infrastructure-investment-employment-expectations-stimulus http://hdl.handle.net/10986/18718 English en_US LCSSD occasional paper series;no. 1 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Latin America & Caribbean Caribbean Latin America |