Financing infrastructure in developing countries

Journal article: This article develops a theoretical framework to analyse options for financing infrastructure in developing countries. We build a basic model that gives motivations for using a combination of public finance, private debt, and private equity. The model is then extended in a number of ways to examine factors that are important for developing countries. We focus in particular on key institutional weaknesses that are often important for infrastructure investment. Overall, we show that such weaknesses can be key in determining financing choices, but that they do not all push in the same direction. Financing schemes must therefore be adapted to consider the institutional limitations that are most pertinent in any given context.

Author(s)

Antonio Estache, Tomas Serebrisky, Liam Wren-Lewis

Journal
  • Oxford Review of Economic Policy
Date of publication
  • 2015
Keywords JEL
G32 G38 H54 O16
Keywords
  • Finance
  • Development
  • Infrastructure
Pages
  • 279-304
Version
  • 1
Volume
  • 31