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Infrastructure investment demands in emerging markets and developing economies

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  • Ruiz Nunez,Fernanda
  • Wei,Zichao

Abstract

The authors have assembled 1960?2012 infrastructure stock data from 145 countries to estimate the demand for infrastructure services in emerging markets and developing economies. This paper identifies that the required resource flows to satisfy new demand while maintaining service for existing infrastructure amounts to $836 billion or 6.1 percent of current gross domestic product per year over the period 2014?20. The annual infrastructure investment gap for emerging markets and developing economies is $452 billion per year, which implies that emerging markets and developing economies should almost double their current spending. The paper also estimates that half of the spending should be allocated to maintenance of existing assets. Acknowledging the challenges to compare infrastructure investment estimates across different methodologies, the authors recognize this result as a lower bound estimate and compare the results with others available in the literature.

Suggested Citation

  • Ruiz Nunez,Fernanda & Wei,Zichao, 2015. "Infrastructure investment demands in emerging markets and developing economies," Policy Research Working Paper Series 7414, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7414
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    References listed on IDEAS

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    Cited by:

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    2. Francesca Castellani & Marcelo Olarreaga & Ugo Panizza & Yue Zhou, 2018. "Investment Gaps in IDB Borrowing Countries," IHEID Working Papers 03-2018, Economics Section, The Graduate Institute of International Studies.
    3. Ahmed Farouk Kineber & Saeed Reza Mohandes & Mohammed Magdy Hamed & Atul Kumar Singh & Soha Elayoty, 2022. "Identifying and Assessing the Critical Criteria for Material Selection in Storm Drainage Networks: A Stationary Analysis Approach," Sustainability, MDPI, vol. 14(21), pages 1-18, October.
    4. Renato Santiago & Matheus Koengkan & José Alberto Fuinhas & António Cardoso Marques, 2020. "The relationship between public capital stock, private capital stock and economic growth in the Latin American and Caribbean countries," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(3), pages 293-317, September.
    5. Germaschewski, Yin, 2020. "Stabilization policy, infrastructure investment, and welfare in a small open economy," Economic Modelling, Elsevier, vol. 84(C), pages 322-339.
    6. Marcelo Gordillo,Darwin & Mandri-Perrott,Xavier Cledan & House,Ruth Schuyler & Schwartz,Jordan Z., 2016. "Prioritizing infrastructure investment : a framework for government decision making," Policy Research Working Paper Series 7674, The World Bank.
    7. Price, Richard, 2016. "Governance, funding and finance for major infrastructure projects: bridging the gaps," MPRA Paper 74977, University Library of Munich, Germany.
    8. Abdul Abiad & Margarita Debuque-Gonzales & Andrea Loren Sy, 2018. "The Evolution and Impact of Infrastructure in Middle-Income Countries: Anything Special?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(6), pages 1239-1263, May.
    9. Abeysekara, Baudhi & Perera, Piyaruwan & Chhipi Shrestha, Gyan Kumar & Gunaruwan, Lalithasiri & Kumarage, Amal & Sadiq, Rehan & Hewage, Kasun, 2021. "Improving the capital deployment efficiency: An infrastructure investment planning process in transportation project," Research in Transportation Economics, Elsevier, vol. 88(C).
    10. Abiad, Abdul & Debuque-Gonzales, Margarita & Sy, Andrea Loren, 2017. "The Role and Impact of Infrastructure in Middle-Income Countries: Anything Special?," ADB Economics Working Paper Series 518, Asian Development Bank.
    11. Noman Arshed & Muhammad Shahid Hassan & Muhammad Umair Khan & Arslan Arif Uppal, 2022. "Moderating Effects of Logistics Infrastructure Development and Real Sector Productivity: A Case of Pakistan," Global Business Review, International Management Institute, vol. 23(3), pages 676-693, June.

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