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Iimi, Atsushi
Transport Global Practice
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Industrial organization,
Development economics
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Transport Global Practice
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August 2, 2023
Biography
Atsushi Iimi is a Senior Economist in the Transport Global Practice of the World Bank where he specializes in development economics related to the Bank’s transport operations in Africa. He joined the World Bank in 2006 after earning a Ph.D. in economics from Brown University. Before joining the Bank, he also worked at IMF and JICA/OEFC, Japan. His research interests include spatial analysis, rural accessibility, evaluation of transport and energy projects, growth and public expenditure. His research on these topics has been published in scholarly journals, such as the Review of Industrial Economics, Journal of Urban Economics, Journal of Applied Economics, the Development Economies, and IMF Staff Papers.
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Publication
Infrastructure and Trade Preferences for the Livestock Sector : Empirical Evidence from the Beef Industry in Africa
(World Bank, Washington, DC, 2007-04) Iimi, AtsushiTrade preferences are expected to facilitate global market integration and offer the potential for rapid economic growth and poverty reduction for developing countries. But those preferences do not always guarantee sustainable external competitiveness to beneficiary countries and may risk discouraging their efforts to improve underlying productivity. This paper examines the EU beef import market where several African countries have been granted preferential treatment. The estimation results suggest that profitability improvement achieved by countries under the Cotonou protocol compares unfavorably with the returns to nonbeneficiary countries in recent years. Rather, it shows that public infrastructure, such as paved roads, has an important role in lowering production costs and thus increasing external competitiveness and market shares. -
Publication
What is Missing Between Agricultural Growth and Infrastructure Development? Cases of Coffee and Dairy in Africa
(World Bank, Washington, DC, 2007-11) Iimi, Atsushi ; Smith, James WilsonAlthough it is commonly believed that aggregate economic growth must be associated with public infrastructure stocks, the possible infrastructure needs and effects are different from industry to industry. The agriculture sector is typical. Various infrastructures would affect agriculture growth differently depending on the type of commodity. This paper finds that a general transport network is essential to promote coffee and cocoa production, perhaps along with irrigation facilities, depending on local rainfall. Conversely, along with the transport network, the dairy industry necessitates rural water supply services as well. In some African countries, a 1 percent improvement in these key aspects of infrastructure could raise GDP by about 0.1-0.4 percent, and by possibly by several percent in some cases. -
Publication
Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed
(World Bank, Washington, DC, 2008-07) Estache, Antonio ; Iimi, AtsushiInfrastructure is the engine for economic growth. The international donor community has spent about 70-100 billion U.S. dollars on infrastructure development in developing countries every year. However, it is arguable whether these financial resources are used efficiently, particularly whether the current infrastructure procurement prices are appropriate. Without doubt a key is competition to curb public procurement costs. This paper analyzes procurement data from multi and bilateral official development projects in three infrastructure sectors: roads, electricity, and water and sanitation. The findings show that the competition effect is underutilized. To take full advantage of competition, at least seven bidders are needed in the road and water sectors, while three may be enough in the power sector. The paper also shows that not only competition, but also auction design, especially lot division, is crucial for reducing unit costs of infrastructure. Based on the estimated efficient unit costs, the annual financial needs are estimated at approximately 360 billion U.S. dollars. By promoting competition, the developing world might be able to save at most 8.2 percent of total infrastructure development costs. -
Publication
Multidimensionality and Renegotiation : Evidence from Transport-Sector Public-Private-Partnership Transactions in Latin America
(World Bank, Washington, DC, 2008-07) Estache, Antonio ; Guasch, Jose-Luis ; Iimi, Atsushi ; Trujillo, LourdesMultidimensional auctions are a natural and practical solution when auctioneers pursue more than one objective in their public-private-partnership transactions. However, it is difficult to achieve auction efficiency with multiple award criteria. Using auction data from road and railway concessions in Latin America, the probability of renegotiation this paper estimates by a two-stage least squares technique with a binary selection in the first-stage regression. The findings show that auctioneers tend to adopt the multidimensional format when the need for social considerations, such as alleviation of unemployment, is high. This implies that such political considerations could hinder efficiency and transparency in auctions. The analysis also shows that the renegotiation risk in infrastructure concessions increases when multidimensional auctions are used. Rather, good governance, particularly anti-corruption policies, can mitigate the renegotiation problem. -
Publication
Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data
(World Bank, Washington, DC, 2008-03) Iimi, AtsushiEconomic development is affected by infrastructure services in both volume and quality terms. However, the quality of infrastructure is relatively difficult to measure and assess. The current paper, using firm-level data collected by a business environment assessment survey in 26 countries in Europe and Central Asia, estimates the marginal impacts on firm costs of infrastructure quality. The results suggest that the reliability or continuity of services is important for business performance. Firm costs significantly increase when electricity outages occur more frequently and the average outage duration becomes longer. Similarly, increased hours of water supply suspensions also reduce firms' competitiveness. In these countries, it is found that the total benefit for the economy from eliminating the existing electricity outages ranges from 0.5 to 6 percent of gross domestic product. If all water suspensions are removed, the economy could receive a gain of about 0.5 to 2 percent of gross domestic product. By contrast, the quality of telecommunications services seems to have no significant impact. -
Publication
Hidden Treasures in the Comoros: The Impact of Inter-Island Connectivity Improvement on Agricultural Production
(World Bank, Washington, DC, 2019-08) Iimi, AtsushiThe paper revisits the traditional transport-agricultural growth nexus. Connectivity is particularly challenging for small island developing states, such as the Comoros, where domestic markets are limited and transport and transaction costs tend to be high. Using household survey data from Comoros, the paper shows that significant untapped economic potential exists in the domestic market. The analysis shows that better transport connectivity increases crop production and market sales. Accessibility to Moroni, the primary market in the country, and inter-island connectivity are of particular importance. Not only transport infrastructure, but also services are important. Access to intermediary services, such as cooperatives and collectors, is also found to have a positive impact on crop production and market sales. -
Publication
Crop Choice and Infrastructure Accessibility in Tanzania: Subsistence Crops or Export Crops?
(World Bank, Washington, DC, 2015-06) Iimi, Atsushi ; Humphreys, Richard Martin ; Melibaeva, SevaraAfrica has great potential for agriculture. Although international commodity prices have been buoyant, Africa’s supply response seems to be weak. A variety of constraints may exist. Using the case of Tanzania, the paper examines the impact of market connectivity, domestic and international, on farmers’ crop choices. It is shown that the international market connectivity, measured by transport costs to the maritime port, is important for farmers to choose export crops, such as cotton and tobacco. Internal connectivity to the domestic market is also found to be important for growing food crops, such as maize and rice. Among other inputs, access to irrigation and improved seed availability are also important factors in the crop choices of farmers. The size of land area is one constraint to promote the crop shift. The paper also reports the finding that farmers are not using market prices effectively in their choice of crop, even after the endogeneity of local prices is taken into account. -
Publication
Firms’ Locational Choice and Infrastructure Development in Tanzania: Instrumental Variable Spatial Autoregressive Model
(World Bank, Washington, DC, 2015-06) Iimi, Atsushi ; Humphreys, Richard Martin ; Melibaeva, SevaraAgglomeration economies are among the most important factors in increasing firm productivity. However, there is little evidence supportive of this in Africa. Using the firm registry database in Tanzania, this paper examines a new application of the logit approach with two empirical issues taken into account: spatial autocorrelation and endogeneity of infrastructure placement. The paper finds significant agglomeration economies. It is also found that firms are more likely to be located where local connectivity and access to markets are good. The paper finds that dealing with infrastructure endogeneity and spatial autocorrelation in the empirical model is important. According to the exogeneity test, infrastructure variables are likely endogenous. The spatial autoregressive term is significant. As expected, therefore, there are positive externalities of firm location choice around the neighboring areas. -
Publication
Firm Inventory Behavior in East Africa
(World Bank, Washington, DC, 2015-06) Iimi, Atsushi ; Humphrey, Richard Martin ; Melibaeva, SevaraFirms normally keep certain inventories, including raw materials, work-in-progress, and finished goods, to operate seamlessly and not to miss possible business opportunities. But inventory is costly, and the optimal firm inventory differs depending on various economic conditions, including trade and transport costs. The paper examines firm inventory behavior in East Africa, in which transport connectivity, especially to the ports, is considered as one of the major business constraints. Using firm-level data from Burundi, Kenya, Rwanda, Tanzania, and Uganda, it is shown that transport connectivity significantly affects firm inventory behavior. In particular, road density and transport costs to the port are important to determine the optimal inventory level. With more roads in a city and/or cheaper access to the port, firms would hold smaller inventories. -
Publication
Firm Productivity and Infrastructure Costs in East Africa
(World Bank, Washington, DC, 2015-06) Iimi, Atsushi ; Humphrey, Richard Martin ; Melibaeva, SevaraInfrastructure is an important driving force for economic growth. It reduces trade and transaction costs and stimulates the productivity of the economy. Africa has been lagging behind in the global manufacturing market. Among others, infrastructure is an important constraint in many African countries. Using firm-level data for East Africa, the paper reexamines the relationship between firm performance and infrastructure. It is shown that labor costs are by far the most important to stimulate firm production. Among the infrastructure sectors, electricity costs have the highest output elasticity, followed by transport costs. In addition, the paper shows that the quality of infrastructure is important to increase firm production. In particular, quality transport infrastructure seems to be essential. The paper also finds that agglomeration economies can reduce firm costs. The agglomeration elasticity is estimated at 0.03–0.04.