IDEAS home Printed from https://ideas.repec.org/p/boc/psug10/03.html
   My bibliography  Save this paper

The determinants of private sector and multilateral development agencies' participation in infrastructure projects

Author

Listed:
  • Maria Basilio

    (IP Beja)

Abstract

Much more investment will be needed in developing countries to achieve the Millennium Development Goals, specifically, the goal of reducing poverty. In this respect, private-sector investment is critical, bringing more funds, expertise, and efficiency to the development of projects in several essential areas, like energy, transport, water, and telecommunications. Complementarily, the involvement of Multilateral Development Agencies (MDA) plays an important "enabling" function, acting like a mechanism of risk reduction and enhancing credit. To address these unexplored topics, I perform an empirical analysis of the cross-country determinants of private sector and MDA participation in infrastructure Public Private Partnerships; for this analysis, I use data from developing countries, which was acquired from the World Bank's Private Participation in Infrastructure database. The results suggest the following: the participation of MDA is higher for less populous and poorer countries. Yet neither level of political risk of a country nor respect for human rights seems to play any role in explaining multilateral participation in projects. Concerning private-sector participation, proxies for the country's economic risk are more relevant. The private sector seems to prefer investing in projects located in richer and less populous countries. Also statistically relevant is the country's legal origin and whether the project has MDA participation.

Suggested Citation

  • Maria Basilio, 2010. "The determinants of private sector and multilateral development agencies' participation in infrastructure projects," Portuguese Stata Users' Group Meetings 2010 03, Stata Users Group.
    • Handle: RePEc:boc:psug10:03
    as

    Download full text from publisher

    File URL: http://repec.org/psug2010/PTSUG10.Basilio.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Blanc-Brude, Frederic & Goldsmith, Hugh & Valila, Timo, 2007. "Public-Private Partnerships In Europe: An Update," Economic and Financial Reports 2007/3, European Investment Bank, Economics Department.
    2. Jennifer Tobin & Susan Rose-Ackerman, 2003. "Foreign Direct Investment and the Business Environment in Developing Countries: the Impact of Bilateral Investment Treaties," William Davidson Institute Working Papers Series 587, William Davidson Institute at the University of Michigan.
    Full references (including those not matched with items on IDEAS)

    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. Chia-yi Lee & Noel P. Johnston, 2016. "Improving Reputation BIT by BIT: Bilateral Investment Treaties and Foreign Accountability," International Interactions, Taylor & Francis Journals, vol. 42(3), pages 429-451, May.
    2. Kappeler, Andreas & Nemoz, Mathieu, 2010. "Public-Private Partnerships in Europe - Before and During the Recent Financial Crisis," Economic and Financial Reports 2010/4, European Investment Bank, Economics Department.
    3. Xanthippe Adamoglou & Dimitris Kyrkilis, 2020. "MNEs Entry Strategies through a Distance Framework: A New Perspective," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(3-4), pages 83-105, July-Dece.
    4. Cao, Thi Hong Vinh & Lu, Thi Thu Trang & Nguyen, Thi Viet Hoa, 2014. "The Impact of Heterogeneous Bilateral Investment Treaties (BIT) on Foreign Direct Investment (FDI) inflows to Vietnam," Papers 916, World Trade Institute.
    5. Dónal Palcic & Eoin Reeves & Anne Stafford, 2018. "Lifting the Lid: the Private Financing of Motorway PPPs in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 49(2), pages 217-239.
    6. Eoin Reeves, 2011. "The Only Game in Town: Public Private Partnerships in the Irish Water Services Sector," The Economic and Social Review, Economic and Social Studies, vol. 42(1), pages 95-111.
    7. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2009. "Soft budgets and Renegotiations in Public-Private Partnerships," Documentos de Trabajo 265, Centro de Economía Aplicada, Universidad de Chile.
    8. Neumayer, Eric & Spess, Laura, 2005. "Do bilateral investment treaties increase foreign direct investment to developing countries?," World Development, Elsevier, vol. 33(10), pages 1567-1585, October.
    9. Axel Berger & Matthias Busse & Peter Nunnenkamp & Martin Roy, 2013. "Do trade and investment agreements lead to more FDI? Accounting for key provisions inside the black box," International Economics and Economic Policy, Springer, vol. 10(2), pages 247-275, June.
    10. Michael Frenkel & Benedikt Walter, 2017. "Do Bilateral Investment Treaties Attract Foreign Direct Investment? The Role of International Dispute Settlement Provisions," WHU Working Paper Series - Economics Group 17-08, WHU - Otto Beisheim School of Management.
    11. World Bank, 2007. "East Asian FTAs in Services," World Bank Publications - Reports 19240, The World Bank Group.
    12. Bergstrand, Jeffrey H. & Egger, Peter, 2013. "What determines BITs?," Journal of International Economics, Elsevier, vol. 90(1), pages 107-122.
    13. Aisbett, Emma, 2007. "Bilateral Investment Treaties and Foreign Direct Investment: Correlation versus Causation," CUDARE Working Papers 7188, University of California, Berkeley, Department of Agricultural and Resource Economics.
    14. Busse, Matthias & Königer, Jens & Nunnenkamp, Peter, 2008. "FDI promotion through bilateral investment treaties: More than a bit?," Kiel Working Papers 1403, Kiel Institute for the World Economy (IfW Kiel).
    15. Rod Falvey & Neil Foster-McGregor, 2017. "Heterogeneous effects of bilateral investment treaties," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 631-656, November.
    16. Selen Sarisoy Guerin, 2011. "Do the European Union’s Bilateral Investment Treaties Matter? The Way Forward After Lisbon," Chapters, in: Wim Meeusen (ed.), The Economic Crisis and European Integration, chapter 6, Edward Elgar Publishing.
    17. Roos Os & Roeline Knottnerus, 2016. "Investment Protection Agreements, Human Rights and Sustainable Development: An Uneasy Mix," Development, Palgrave Macmillan;Society for International Deveopment, vol. 59(1), pages 107-113, June.
    18. Pablo M. Pinto & Stephen Weymouth, 2016. "Partisan Cycles in Offshore Outsourcing: Evidence from U.S. Imports," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 233-261, November.
    19. Peter Nunnenkamp, 2010. "How Global is Foreign Direct Investment and What Can Policymakers Do About It? Stylized Facts, Knowledge Gaps, and Selected Policy Instruments," Chapters, in: Robert M. Solow & Jean-Philippe Touffut (ed.), The Shape of the Division of Labour, chapter 2, Edward Elgar Publishing.
    20. Nasrollahi Shahri, Nima, 2010. "The Effectiveness of international investment instruments on the amount of foreign investment (a case study of Iran)," MPRA Paper 36317, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    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:boc:psug10:03. 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: Christopher F Baum (email available below). General contact details of provider: https://edirc.repec.org/data/stataea.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.