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Macroeconomics Effects on Project Finance Performances and Sustainability

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Listed:
  • Francesco Campanella
  • Luana Serino
  • Teresa Nelli
  • Domenico Graziano

Abstract

The aim of this study is to demonstrate whether the macroeconomic variables have a significant impact on profitability, sustainability, and value creation of projects implemented with the project financing technique. The empirical analysis was developed using the performance trend from 1997 to 2014 (18 years) of 10 large infrastructure projects financed using the project financing technique in BRICS countries (Brazil, Russia, India, China, South Africa) and in PIIGS countries (Portugal, Italy, Ireland, Greece, Spain). The results show that the indicators of economic performance and financial sustainability are influenced by various macroeconomic variables. Instead, value creation indicators are affected little by exogenous factors. In the operative sense, our work suggests that in the design phase of an infrastructure it is necessary to consider that macroeconomic factors can positively or negatively impact economic and financial performance.

Suggested Citation

  • Francesco Campanella & Luana Serino & Teresa Nelli & Domenico Graziano, 2018. "Macroeconomics Effects on Project Finance Performances and Sustainability," International Business Research, Canadian Center of Science and Education, vol. 11(6), pages 21-28, June.
    • Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:6:p:21-28
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    References listed on IDEAS

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    Cited by:

    1. Pengran Zhou & Pengfei Zhou & Serhat Yüksel & Hasan Dinçer & Gülsüm Sena Uluer, 2019. "Balanced Scorecard-Based Evaluation of Sustainable Energy Investment Projects with IT2 Fuzzy Hybrid Decision Making Approach," Energies, MDPI, vol. 13(1), pages 1-20, December.

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    More about this item

    Keywords

    project finance; public-private partnership; BRICS; PIIGS; performance; sustainability;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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