How to Harness the Positive Potential of KKN: Explaining Variation in the Private Sector Provision of Public Goods in Indonesia

Jamie Davidson

Journal of Development Studies, 2010, vol. 46, issue 10, 1729-1748

Abstract: This article argues that the two prevailing perspectives that explain private sector participation in infrastructure in developing countries - new institutional economics and the rent-seeking approach - cannot account for the evident variations within and across sectors in a given country. This study uses two cases from Indonesia's attempt to promote private investment in toll road construction to demonstrate that a firm-level analysis is adequate to the task. In particular, the specific incentive structure that a rent-seeker faces may explain whether positive or negative rent will be facilitated.

Date: 2010
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DOI: 10.1080/00220388.2010.492866

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