Institutional and Political Determinants of Private Participation in Infrastructure

Marian Moszoro, Gonzalo Araya, Fernanda Ruiz-Nuñez and Jordan Schwartz
Additional contact information
Gonzalo Araya: The World Bank
Fernanda Ruiz-Nuñez: The World Bank
Jordan Schwartz: The World Bank

No 2014/15, International Transport Forum Discussion Papers from OECD Publishing

Abstract: We assembled a large panel of project-level technical and financial data and country-level economic, institutional, political, and governance variables to assess the determinants of private financing of infrastructure in emerging markets and developing economies. Controlling for economic characteristics, we find that overall private participation of infrastructure financing increases with freedom from corruption, rule of law, quality of regulations, and decreases with court disputes. We provide plausible explanations of deviations from this pattern when data is disaggregated at the sectoral level. We also found that legal systems—types of democracy or dictatorship—do not play a role in whether the private sector invests in infrastructure. Our results do not vary when controlling for income inequality and across quartiles of experience, country wealth, and wealth per capita. The study shows that upstream “enabling” institutions, policies, and regulations and sector economics need to be addressed simultaneously to facilitate private infrastructure investment financing.

Keywords: bureaucracy; corruption; regulation; rule of law (search for similar items in EconPapers)
JEL-codes: D73 H54 L33 L51 R42 (search for similar items in EconPapers)
Date: 2014-10-01
New Economics Papers: this item is included in nep-law and nep-pol
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1787/5jrw2xzj0m7l-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:itfaab:2014/15-en

Access Statistics for this paper

More papers in International Transport Forum Discussion Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).