IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7414.html
   My bibliography  Save this paper

Infrastructure investment demands in emerging markets and developing economies

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/09/17/090224b0830e769d/1_0/Rendered/PDF/Infrastructure0developing0economies.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ianchovichina, Elena & Estache, Antonio & Foucart, Renaud & Garsous, Grégoire & Yepes, Tito, 2013. "Job Creation through Infrastructure Investment in the Middle East and North Africa," World Development, Elsevier, vol. 45(C), pages 209-222.
    2. Harpaul Alberto Kohli & Phillip Basil, 2011. "Requirements for Infrastructure Investment in Latin America Under Alternate Growth Scenarios," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(1), pages 59-110, January.
    3. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    4. 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.
    5. Bhattacharyay, Biswa N., 2010. "Estimating Demand for Infrastructure in Energy, Transport, Telecommunications, Water and Sanitation in Asia and the Pacific: 2010-2020," ADBI Working Papers 248, Asian Development Bank Institute.
    6. Homi Kharas & Indermit Gill, 2007. "An East Asian Renaissance : Ideas for Economic Growth," World Bank Publications - Books, The World Bank Group, number 6798.
    7. Fay, Marianne, 2001. "Financing the future : infrastructure needs in Latin America, 2000-05," Policy Research Working Paper Series 2545, The World Bank.
    8. Kennedy, Christopher & Corfee-Morlot, Jan, 2013. "Past performance and future needs for low carbon climate resilient infrastructure– An investment perspective," Energy Policy, Elsevier, vol. 59(C), pages 773-783.
    9. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387.
    10. Schwartz, Jordan Z. & Andres, Luis A. & Dragoiu, Georgeta, 2009. "Crisis in Latin America : infrastructure investment, employment and the expectations of stimulus," Policy Research Working Paper Series 5009, The World Bank.
    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. Candice Branchoux & Lin Fang & Yusuke Tateno, 2018. "Estimating Infrastructure Financing Needs in the Asia-Pacific Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States," Economies, MDPI, vol. 6(3), pages 1-21, August.
    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.

    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. Harpaul Alberto Kohli & Y. Aaron Szyf & Drew Arnold, 2012. "Construction and Analysis of a Global GDP Growth Model for 185 Countries through 2050," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 4(2), pages 91-153, May.
    2. Jorge Davalos & Jean-Marc Montaud & Nicolas Pecastaing, 2019. "Potential effect of Scaling-up Iinfrastructure in Peru: a general equilibrium model-bases analysis," Working papers of CATT hal-02937833, HAL.
    3. Bowen, Alex, 2012. "'Green'growth,'green'jobs and labor markets," Policy Research Working Paper Series 5990, The World Bank.
    4. Justin Yifu Lin & Doerte Doemeland, 2012. "Beyond Keynesianism: Global Infrastructure Investments In Times Of Crisis," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-29.
    5. Gill,Indermit S. & Revenga,Ana L. & Zeballos,Christian, 2016. "Grow, invest, insure : a game plan to end extreme poverty by 2030," Policy Research Working Paper Series 7892, The World Bank.
    6. 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.
    7. Kasyanenko,Sergiy & Kenworthy,Philip George & Ruch,Franz Ulrich & Vashakmadze,Ekaterine T. & Vorisek,Dana Lauren & Wheeler,Collette Mari, 2023. "Investment in Emerging Market and Developing Economy Regions : Trends, Prospects, and Policy Options," Policy Research Working Paper Series 10369, The World Bank.
    8. Fuss, Sabine & Chen, Claudine & Jakob, Michael & Marxen, Annika & Rao, Narasimha D. & Edenhofer, Ottmar, 2016. "Could resource rents finance universal access to infrastructure? A first exploration of needs and rents," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 691-712, December.
    9. Alex Bowen, 2012. "�Green� growth, �green� jobs and labour markets," GRI Working Papers 76, Grantham Research Institute on Climate Change and the Environment.
    10. Harpaul Alberto Kohli & Natasha Mukherjee, 2011. "Potential Costs to Asia of the Middle Income Trap," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(3), pages 291-311, September.
    11. 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.
    12. Han, Xuehui & Wei, Shang-Jin, 2017. "Re-examining the middle-income trap hypothesis (MITH): What to reject and what to revive?," Journal of International Money and Finance, Elsevier, vol. 73(PA), pages 41-61.
    13. Harinder Kohli & Claudio Loser & Anil Sood (ed.), 2013. "Latin America 2040 — Breaking Away from Complacency: An Agenda for Resurgence — Second Edition," Books, Emerging Markets Forum, edition 2, number latam2040v2, Summer.
    14. Jordan Z Schwartz & Fernanda Ruiz-Nuñez & Jeff Chelsky, 2014. "Closing the Infrastructure Finance Gap: Addressing Risk," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    15. Claudio Loser & José Fajgenbaum, 2012. "A New Vision for Mexico 2042: Achieving Prosperity for All," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 4(2), pages 155-195, May.
    16. Jean-Marc Montaud & Jorge Dávalos & Nicolas Pécastaing, 2020. "Potential effects of scaling-up infrastructure in Peru: a general equilibrium model-based analysis," Applied Economics, Taylor & Francis Journals, vol. 52(27), pages 2895-2912, May.
    17. Das Gupta, Monica & Bongaarts, John & Cleland, John, 2011. "Population, poverty, and sustainable development : a review of the evidence," Policy Research Working Paper Series 5719, The World Bank.
    18. van de Walle, Dominique, 2011. "Lasting welfare effects of widowhood in a poor country," Policy Research Working Paper Series 5734, The World Bank.
    19. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    20. Meltem Dayioğlu & Sirma Demir Şeker, 2016. "Social Policy and the Dynamics of Early Childhood Poverty in Turkey," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 17(4), pages 540-557, October.

    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:wbk:wbrwps:7414. 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.