IDEAS home Printed from https://ideas.repec.org/p/ris/eibpap/2010_008.html
   My bibliography  Save this paper

Infrastructure finance in developing countries: An overview

Author

Listed:
  • Estache, Antonio

    (Université libre de Bruxelles)

Abstract

This study analyzes the main approaches to infrastructure financing in developing countries and their evolution. It places the discussion in the context of the importance of infrastructure investment and maintenance needs to achieve growth and borader social objectives. It summarizes the evidence on the efficiency, equity and fiscal consequences of the main public and private financing options commonly used to achieve these goals in these countries. It shows the limits of the role of the private sector as a source of financing of infrastructure and the wide underestimation of public-sector financing support needed to serve the poorest and ensure that services are offered at prices consistent with their ability to pay. It concludes with forward-looking lessons from roughly 20 years of efforts to diversify the sources of infrastructure finance in developing countries.

Suggested Citation

  • Estache, Antonio, 2010. "Infrastructure finance in developing countries: An overview," EIB Papers 8/2010, European Investment Bank, Economics Department.
    • Handle: RePEc:ris:eibpap:2010_008
    as

    Download full text from publisher

    File URL: http://www.eib.org/attachments/efs/eibpapers/eibpapers_2010_v15_n02_en.pdf#page=62
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gundlach, Erich & Wößmann, Ludger, 2001. "Better schools for Europe," Munich Reprints in Economics 20433, University of Munich, Department of Economics.
    2. Willem H. Buiter & Clemens Grafe, 2002. "Anchor, float or abandon ship: exchange rate regimes for the accession countries," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 55(221), pages 111-142.
    3. Katharina Gassner & Alexander Popov & Nataliya Pushak, 2009. "Does Private Sector Participation Improve Performance in Electricity and Water Distribution?," World Bank Publications - Books, The World Bank Group, number 6605.
    4. ?gel de la Fuente, "undated". "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    5. Burda, Michael C, 1998. "The Consequences of EU Enlargement for Central and Eastern European Labour Markets," CEPR Discussion Papers 1881, C.E.P.R. Discussion Papers.
    6. Philippe Martin, 2000. "The Role of Public Policy in the Process of Regional Convergence," SciencePo Working papers Main hal-01011336, HAL.
    7. repec:hal:spmain:info:hdl:2441/9343 is not listed on IDEAS
    8. Briceno-Garmendia, Cecilia & Estache, Antonio & Shafik, Nemat, 2004. "Infrastructure services in developing countries : access, quality, costs and policy reform," Policy Research Working Paper Series 3468, The World Bank.
    9. Valila, Timo & Mehrotra, Aaron, 2005. "Evolution And Determinants Of Public Investment In Europe," Economic and Financial Reports 2005/1, European Investment Bank, Economics Department.
    10. Yannis M. Ioannides & George Petrakos, 2000. "Regional Disparities in Greece and the Performance of Crete, Peloponnese and Thessaly," Discussion Papers Series, Department of Economics, Tufts University 0008, Department of Economics, Tufts University.
    11. Philippe Martin, 1999. "Are European regional policies delivering?," SciencePo Working papers Main hal-01011168, HAL.
    12. Fidrmuc, Jan, 2001. "Democracy in transition economies: Grease or sand in the wheels of growth?," ZEI Working Papers B 09-2001, University of Bonn, ZEI - Center for European Integration Studies.
    13. Galizia, Federico, 2004. "Systemic Credit Risk In The Presence Of Concentration," Economic and Financial Reports 2004/1, European Investment Bank, Economics Department.
    14. Steinherr, Alfred & Tukel, Ali & Ucer, Murat, 2004. "The Turkish Banking Sector - Challenges And Outlook In Transition To Eu Membership," Economic and Financial Reports 2004/2, European Investment Bank, Economics Department.
    15. Rossi, Alessandro & Canpolongo, Francesca & Bichisao, Guido, 2002. "Hedge Accounting Within Ias 39," Economic and Financial Reports 2002/2, European Investment Bank, Economics Department.
    16. Peree, Eric & Riess, Armin, 2003. "The transformation of finance in Europe:introduction and overview," EIB Papers 1/2003, European Investment Bank, Economics Department.
    17. Ferreira, Luisa & Vanhoudt, Patrick, 2002. "Catching The Celtic Tiger By Its Tail," Economic and Financial Reports 2002/1, European Investment Bank, Economics Department.
    18. Oecd, 2009. "Employment and Social Protection," OECD Journal on Development, OECD Publishing, vol. 9(4), pages 7-54.
    19. O'Brien, Dermot & Wagenvoort, Rien, 2000. "Some Empirical Findings On The Characteristics Of Cost-Efficient Credit Institutions," Economic and Financial Reports 2000/1, European Investment Bank, Economics Department.
    20. Wagenvoort, Rien, 2003. "BANK SURVEY EVIDENCE ON "BANK LENDING TO SMEs IN THE EUROPEAN UNION"," Economic and Financial Reports 2003/1, European Investment Bank, Economics Department.
    21. De Grauwe, Paul, 1996. "How to Fix Conversion Rates at the Start of EMU," CEPR Discussion Papers 1530, C.E.P.R. Discussion Papers.
    22. Hurst, Christopher & Uppenberg, Kristian, 2000. "Investment Issues In South-Eastern Europe," Economic and Financial Reports 2000/2, European Investment Bank, Economics Department.
    23. Alfred Steinherr & Ali Tukel & Murat Ucer, 2004. "The Turkish Banking Sector, Challenges and Outlook in Transition to EU Membership," Bruges European Economic Policy Briefings 9, European Economic Studies Department, College of Europe.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Inderst, Georg, 2020. "Social Infrastructure Finance and Institutional Investors. A Global Perspective," MPRA Paper 99239, University Library of Munich, Germany.
    2. Sapatnekar, Sanhita & Patnaik, Ila & Kishore, Kamal, 2018. "Regulating Infrastructure Development in India," Working Papers 18/230, National Institute of Public Finance and Policy.
    3. Ibale, Douglas Amuli & Docquier, Frédéric & Iftikhar, Zainab, 2024. "Spatial Inequality, Poverty and Informality in the Democratic Republic of the Congo," World Development, Elsevier, vol. 173(C).
    4. Roy Bahl & Richard M. Bird, 2014. "Decentralization and Infrastructure: Principles and Practice," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1408, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Clifton, Judith & Díaz-Fuentes, Daniel & Revuelta, Julio, 2014. "Financing utilities: How the role of the European Investment Bank shifted from regional development to making markets," Utilities Policy, Elsevier, vol. 29(C), pages 63-71.
    6. Roy Bahl, 2012. "Metropolitan City Finances in India: Options for A New Fiscal Architecture," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1233, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Roy Bahl, 2014. "A retrospective on taxation in developing countries: Will the weakest link be strengthened?," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 12, pages 405-442, Edward Elgar Publishing.
    8. Gemson, Josephine & Gautami, K.V. & Thillai Rajan, A., 2012. "Impact of private equity investments in infrastructure projects," Utilities Policy, Elsevier, vol. 21(C), pages 59-65.
    9. Johan Fourie & María Santana-Gallego, 2013. "The determinants of African tourism," Development Southern Africa, Taylor & Francis Journals, vol. 30(3), pages 347-366, September.
    10. Justin Yifu Lin & Yan Wang, 2016. "Special Section: China's Growing Trade and its Role to the World Economy," Pacific Economic Review, Wiley Blackwell, vol. 21(1), pages 102-117, February.
    11. Nicole B. Baker & Christian Haddad, 2024. "Private ownership and management control decisions in infrastructure from the perspective of Transaction Cost Theory: Evidence from emerging economies," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 764-791, July.
    12. Jonas Frank & Jorge Martinez-Vazquez, 2014. "Decentralization And Infrastructure: From Gaps To Solutions," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1405, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    13. Liu, Lili & Pradelli, Juan, 2012. "Financing infrastructure and monitoring fiscal risks at the subnational level," Policy Research Working Paper Series 6069, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helm, Dieter, 2010. "Infrastructure and infrastructure finance: The role of the government and the private sector in the current world," EIB Papers 5/2010, European Investment Bank, Economics Department.
    2. Fay, Marianne & Iimi, Atsushi & Perrissin-Fabert, Baptiste, 2010. "Financing greener and climate-resilient infrastructure in developing countries - challenges and opportunities," EIB Papers 7/2010, European Investment Bank, Economics Department.
    3. Stewart, James, 2010. "The UK National Infrastructure Plan 2010," EIB Papers 6/2010, European Investment Bank, Economics Department.
    4. Bitsch, Florian & Buchner, Axel & Kaserer, Christoph, 2010. "Risk, return and cash flow characteristics of infrastructure fund investments," EIB Papers 4/2010, European Investment Bank, Economics Department.
    5. Wagenvoort, Rien & de Nicola, Carlo & Kappeler, Andreas, 2010. "Infrastructure finance in Europe: Composition, evolution and crisis impact," EIB Papers 1/2010, European Investment Bank, Economics Department.
    6. Engel, Eduardo & Fischer, Ronald & Galetovic, Alexander, 2010. "The economics of infrastructure finance: Public-Private Partnerships versus public provision," EIB Papers 2/2010, European Investment Bank, Economics Department.
    7. Inderst, Georg, 2010. "Infrastructure as an asset class," EIB Papers 3/2010, European Investment Bank, Economics Department.
    8. Ayla Ogus & Niloufer Sohrabji, 2008. "On the optimality and sustainability of Turkey’s current account," Empirical Economics, Springer, vol. 35(3), pages 543-568, November.
    9. Baum, Christopher F. & Caglayan, Mustafa & Talavera, Oleksandr, 2010. "Parliamentary election cycles and the Turkish banking sector," Journal of Banking & Finance, Elsevier, vol. 34(11), pages 2709-2719, November.
    10. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    11. Aysan, Ahmet Faruk & Ceyhan, Şanli Pinar, 2008. "What determines the banking sector performance in globalized financial markets? The case of Turkey," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(7), pages 1593-1602.
    12. Andrea Szalavetz, 2001. "Western policy lessons in the second phase of regional transformation," IWE Working Papers 119, Institute for World Economics - Centre for Economic and Regional Studies.
    13. Aykut Kibritcioglu, 2007. "The Labour Market Implications of Large-Scale Restructuring in the Banking Sector in Turkey," Economics Bulletin, AccessEcon, vol. 28(4), pages 1.
    14. Aysan, Ahmet Faruk & Ceyhan, Sanli Pinar, 2008. "Structural Change and the Efficiency of Banking In Turkey: Does Ownership Matter?," MPRA Paper 17849, University Library of Munich, Germany.
    15. Sami Ben Naceur & Magda Kandil, 2013. "Has The Basel Capital Requirement Caused Credit Crunch In The Mena Region?," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-33.
    16. Rodríguez-Pose, Andrés & Fratesi, Ugo, 2002. "Unbalanced development strategies and the lack of regional convergence in the EU," ERSA conference papers ersa02p415, European Regional Science Association.
    17. Vasily Astrov & Josef Pöschl & Hermine Vidovic & Julia Wörz, 2005. "Turkey: Macroeconomic Vulnerability, Competitiveness and the Labour Market," wiiw Country Profile 21, The Vienna Institute for International Economic Studies, wiiw.
    18. Norbert Berthold & Michael Neumann, 2005. "Zahlt Deutschland drauf? - Was die Neue Ökonomische Geographie der deutschen Politik für die Verhandlungen um den europäischen Etat mit auf den Weg geben kann," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(10), pages 16-22, May.
    19. Iveta Repková & Daniel Stavárek, 2014. "Concentration and Competition in the Banking Sector of Turkey," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(36), pages 625-625, May.
    20. Selçuk Caner & Süheyla Özyıldırım & A. Ungan, 2012. "How Sensitive Are Bank Managers to Shareholder Value?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 42(3), pages 187-205, December.

    More about this item

    Keywords

    Infrastructure finance; Poverty; Developing countries;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

    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:ris:eibpap:2010_008. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Polyxeni Kanelliadou (email available below). General contact details of provider: https://edirc.repec.org/data/ceeiblu.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.