Financing Infrastructure in Developing Countries: Lessons from the Railway Age
AbstractThis paper considers the role of infrastructure investment in the economic development of the regions of overseas European settlement in the 19th century. Its premise is that the pattern of investment in general, and the roles of public intervention and external finance in particular, were consequences of the structure of financial markets in countries in the early stages of economic development. Government intervention, external finance and debt-servicing difficulties were correlates of the financial-market imperfections that gave rise to informational asymmetries, moral hazard and adverse selection, while government policies to overcome asymmetric information encouraged management to engage in bankruptcy for profit. The tradeoff between credit rationing and bankruptcy for profit is at the heart of the paper.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of California at Berkeley in its series Economics Working Papers with number 94-230.
Date of creation: 01 Oct 1994
Date of revision:
Contact details of provider:
Postal: University of California at Berkeley, Berkeley, CA USA
Web page: http://www.haas.berkeley.edu/groups/iber/wps/econwp.html
More information through EDIRC
Postal: IBER, F502 Haas Building, University of California, Berkeley CA 94720-1922
Other versions of this item:
- Eichengreen, Barry, 1995. "Financing Infrastructure in Developing Countries: Lessons from the Railway Age," World Bank Research Observer, World Bank Group, vol. 10(1), pages 75-91, February.
- Eichengreen, Barry, 1994. "Financing infrastructure in developing countries : lessons from the Railway Age," Policy Research Working Paper Series 1379, The World Bank.
- Eichengreen, Barry, 1994. "Financing Infrastructure in Developing Countries: Lessons from the Railway Age," Department of Economics, Working Paper Series qt39z8346j, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de Meza, David & Webb, David C, 1987. "Too Much Investment: A Problem of Asymmetric Information," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 281-92, May.
- George A. Akerlof & Paul M. Romer, 1993. "Looting: The Economic Underworld of Bankruptcy for Profit," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2), pages 1-74.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Jenks, Leland H., 1944. "Railroads as an Economic Force in American Development," The Journal of Economic History, Cambridge University Press, vol. 4(01), pages 1-20, May.
- Jenks, Leland H., 1951. "Britain and American Railway Development," The Journal of Economic History, Cambridge University Press, vol. 11(04), pages 375-388, September.
- Singh, Nirvikar & Srinivasan, T. N., 2004.
"Fiscal Policy in India: Lessons and Priorities,"
Santa Cruz Department of Economics, Working Paper Series
qt8nx3v467, Department of Economics, UC Santa Cruz.
- Singh, Nirvikar & Srinivasan, T. N., 2004. "Fiscal Policy in India: Lessons and Priorities," Santa Cruz Department of Economics, Working Paper Series qt67t3p20w, Department of Economics, UC Santa Cruz.
- Singh, Nirvikar & Srinivasan, T. N., 2004. "Fiscal Policy in India: Lessons and Priorities," Santa Cruz Center for International Economics, Working Paper Series qt67t3p20w, Center for International Economics, UC Santa Cruz.
- Ramamurti, Ravi, 1997. "Testing the limits of privatization: Argentine railroads," World Development, Elsevier, vol. 25(12), pages 1973-1993, December.
- P. Nayak, 2007. "Infrastructure Development in India An Appraisal," Working Papers id:980, eSocialSciences.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.