IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2021-117.html
   My bibliography  Save this paper

Scaling Up Quality Infrastructure Investment

Author

Listed:
  • Olivier Bizimana
  • Laura Jaramillo
  • Mr. Saji Thomas

Abstract

South Asia needs large infrastructure investments to achieve its development goals, and public investment can also support the Covid-19 recovery. Regression estimates that account for the quantity and quality of investment suggest that public infrastructure was a key driver of productivity growth in South Asia. Going forward, higher public infrastructure spending can raise growth, but its benefits depend on how it is financed and managed. Model simulations show that tax financing, concessional lending, or private sector financing through public private partnerships (PPPs) are more advantageous than government borrowing through financial markets because they support growth while containing the impact on public debt. However, the optimal choice also depends on available fiscal space, taxation capacity, implementation risks, and public investment efficiency. To reap the most benefits from higher infrastructure investment, South Asian countries need to manage fiscal risks carefully, including from PPPs and state-owned enterprises, and improve public investment efficiency.

Suggested Citation

  • Olivier Bizimana & Laura Jaramillo & Mr. Saji Thomas, 2021. "Scaling Up Quality Infrastructure Investment," IMF Working Papers 2021/117, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/117
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=50294
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amalia Kouskoura & Eleni Kalliontzi & Dimitrios Skalkos & Ioannis Bakouros, 2024. "Assessing the Key Factors Measuring Regional Competitiveness," Sustainability, MDPI, vol. 16(6), pages 1-23, March.

    More about this item

    Keywords

    infrastructure investment; tax financing; quality of investment; PPP financing; efficiency gap; multiyear investment planning; Public investment spending; Infrastructure; Capital budget; South Asia; Asia and Pacific; Caribbean;
    All these keywords.

    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:imf:imfwpa:2021/117. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.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.