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Infrastructure project finance and capital flows : a new perspective

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  • Dailami, Mansoor*Leipziger, Danny

Abstract

The success with which middle-income indebted developing countries have gained access to private international finance in the 1990s is a tribute to their own domestic economic performance, international policy in dealing with the debt crisis of the 1980s, and innovation in international financial markets. Emphasizing the role of private infrastructure investment as a vehicle for attracting foreign capital to developing countries in the 1990s, the authors develop an analysis model to examine what determines the credit-risk premium on infrastructure projects in the country-risk environment of developing countries. They also provide tentative quantitative evidence of the importance of macroeconomic and project-specific attributes of project risk. Their key finding is that the market seems to impose a high-risk premium on loans to countries with high inflation and to projects in the road sector.

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  • Dailami, Mansoor*Leipziger, Danny, 1997. "Infrastructure project finance and capital flows : a new perspective," Policy Research Working Paper Series 1861, The World Bank.
  • Handle: RePEc:wbk:wbrwps:1861
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    Cited by:

    1. Dailami, Mansoor & Hauswald, Robert, 2000. "Risk shifting and long-term contracts : evidence from the Ras Gas Project," Policy Research Working Paper Series 2469, The World Bank.
    2. Mathias Hoffmann, 2003. "Cross-country evidence on the link between the level of infrastructure and capital inflows," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 515-526.
    3. Dailami, Mansoor & Ul Haque, Nadeem, 1998. "What macroeconomic policies are"sound?"," Policy Research Working Paper Series 1995, The World Bank.
    4. Dailami, Mansoor & Hauswald, Robert, 2003. "The emerging project bond market - covenant provisions and credit spreads," Policy Research Working Paper Series 3095, The World Bank.
    5. Klingebiel, Daniela & Ruster, Jeff, 2000. "Why infrastructure financing facilities often fall short of their objectives," Policy Research Working Paper Series 2358, The World Bank.
    6. Philip R Lane, 2014. "External Funding and Long-term Investment," RBA Annual Conference Volume,in: Alexandra Heath & Matthew Read (ed.), Financial Flows and Infrastructure Financing Reserve Bank of Australia.
    7. Marco Sorge & Blaise Gadanecz, 2004. "The term structure of credit spreads in project finance," BIS Working Papers 159, Bank for International Settlements.
    8. A. Garcia-Bernabeu & F. Mayor-Vitoria & F. Mas-Verdu, 2015. "Project Finance Recent Applications and Future Trends: The State of the Art," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 14(2), pages 159-178, December.
    9. Arabatzis, Garyfallos & Myronidis, Dimitris, 2011. "Contribution of SHP Stations to the development of an area and their social acceptance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3909-3917.
    10. Kleimeier Stefanie & William L. Megginson, 2002. "An empirical analysis of limited recourse project finance," Research Memorandum 066, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    11. Dailami, Mansoor & Klein, Michael, 1998. "Government support to private infrastructure projects in emerging markets," Policy Research Working Paper Series 1868, The World Bank.
    12. Backhaus, Klaus & Gausling, Philipp & Hildebrand, Luise, 2015. "Comparing the incomparable: Lessons to be learned from models evaluating the feasibility of Desertec," Energy, Elsevier, vol. 82(C), pages 905-913.
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    14. Stronzik, Marcus & Hunt, Alistair & Eckermann, Frauke & Taylor, Tim, 2003. "The Role of Transaction Costs and Risk Premia in the Determination of Climate Change Policy Responses," ZEW Discussion Papers 03-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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    18. Pargal, Sheoli, 2003. "Regulation and private sector investment in infrastructure - evidence from Latin America," Policy Research Working Paper Series 3037, The World Bank.
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    23. Ashraf Bany Mohammed & Jorn Altmann, 2010. "A Funding and Governing Model for Achieving Sustainable Growth of Computing e-Infrastructures," TEMEP Discussion Papers 201062, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2010.
    24. Jakob Müllner, 2017. "International project finance: review and implications for international finance and international business," Management Review Quarterly, Springer;Vienna University of Economics and Business, vol. 67(2), pages 97-133, April.

    More about this item

    Keywords

    Economic Theory&Research; Banks&Banking Reform; Public Sector Economics; Financial Intermediation; Payment Systems&Infrastructure; International Terrorism&Counterterrorism; Environmental Economics&Policies;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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