IDEAS home Printed from https://ideas.repec.org/p/mil/wpdepa/2013-06.html
   My bibliography  Save this paper

Explaining Infrastructure Investment Decisions at the European Investment Bank 1958-2004

Author

Listed:
  • Judith CLIFTON

    ()

  • Daniel DÍAZ-FUENTES

    ()

  • JULIO REVUELTA

    ()

Abstract

From its origins in 1958, the European Investment Bank (EIB) was characterized by internal tensions as regards its mission in helping finance infrastructure projects around Europe. On the one hand, Italy had pushed for a social fund that would support less developed regions, whilst Germany promoted a not-for-profit bank that would borrow on international capital markets to lend to viable projects. This paper uses primary data on EIB loans to infrastructure across 1958 to 2004 to reveal how these different interests were played out in practice. Examining EIB infrastructure finance at the country level reveals the bank lent more to those countries most needing finance, thus fulfilling its social role. On the other hand, an analysis of its finance by sector and country shows how the bank changed its priorities, particularly from the 1980s, towards a closer alignment with market interests, as finance becomes increasingly linked to those key services that were being liberalized by the European Commission. Finally, an “enlargement” logic behind EIB finance can be detected, whereby finance prioritized newly acceding member states during the first few years of their membership of the union.

Suggested Citation

  • Judith CLIFTON & Daniel DÍAZ-FUENTES & JULIO REVUELTA, 2013. "Explaining Infrastructure Investment Decisions at the European Investment Bank 1958-2004," Departmental Working Papers 2013-06, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  • Handle: RePEc:mil:wpdepa:2013-06
    as

    Download full text from publisher

    File URL: http://wp.demm.unimi.it/files/wp/2013/DEMM-2013_06wp.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Graham Bird & Dane Rowlands, 2001. "IMF lending: how is it affected by economic, political and institutional factors?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 4(3), pages 243-270.
    2. Patrick Honohan, 1995. "The Public Policy Role of the European Investment Bank within the EU," Journal of Common Market Studies, Wiley Blackwell, vol. 33(3), pages 315-330, September.
    3. Harrigan, Jane & Wang, Chengang & El-Said, Hamed, 2006. "The economic and political determinants of IMF and world bank lending in the Middle East and North Africa," World Development, Elsevier, vol. 34(2), pages 247-270, February.
    4. Morrison, Kevin M., 2011. "As the World Bank Turns: Determinants of IDA Lending in the Cold War and After," Business and Politics, Cambridge University Press, vol. 13(02), pages 1-27, August.
    5. José A. Carrasco‐Gallego, 2012. "The Marshall Plan and the Spanish postwar economy: a welfare loss analysis," Economic History Review, Economic History Society, vol. 65(1), pages 91-119, February.
    6. Morrison Kevin M, 2011. "As the World Bank Turns: Determinants of IDA Lending in the Cold War and After," Business and Politics, De Gruyter, vol. 13(2), pages 1-29, August.
    7. Michael D. Bordo & Barry Eichengreen, 1993. "A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform," NBER Books, National Bureau of Economic Research, Inc, number bord93-1, July-Dec.
    8. Nick Robinson, 2009. "The European Investment Bank: The EU's Neglected Institution," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 651-673, June.
    9. A. Fedele & A. Mantovani & F. Liucci, 2010. "Credit availability in the crisis: which role for the European Investment Bank Group?," Working Papers 699, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Griffith-Jones, Stephany & Tyson, Judith & Calice, Pietro, 2011. "The European Investment Bank and SMEs: key lessons for Latin America and the Caribbean," Financiamiento para el Desarrollo 236, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Clifton, Judith & Díaz-Fuentes, Daniel, 2011. "La Nueva Política Económica de la OCDE ante el cambio en la Economía Mundial
      [The New Political Economy of the OECD in a context of Shifting World Wealth]
      ," MPRA Paper 33010, University Library of Munich, Germany.
    12. William J. Hausman & Mira Wilkins & John L. Neufeld, 2007. "Global Electrification. Multinational Enterprise and International Finance in the History of Light and Power, 1880s-1914," Revue économique, Presses de Sciences-Po, vol. 58(1), pages 173-190.
    13. D. A. Pinder, 1986. "Small Firms, Regional Development and The European Investment Bank," Journal of Common Market Studies, Wiley Blackwell, vol. 24(3), pages 171-186, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    European Investment Bank; Infrastructure investment; International Finance; Economic Development; European Integration;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    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:mil:wpdepa:2013-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEMM Working Papers). General contact details of provider: http://edirc.repec.org/data/damilit.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.