Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203392 
Year of Publication: 
2018
Series/Report no.: 
ADB Economics Working Paper Series No. 552
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
In this study, we attempt to understand the role of greater access to finance, i.e., stocks, bonds, and bank loans, in public-private partnership (PPP) investment in developing countries. Most developing countries still depend heavily on fiscal financing for infrastructure projects. Our empirical results reconfirm the fact that banks remain the major source of finance for infrastructure projects. The domestic bond market should be further developed to have depth and liquidity enough to provide longterm funding for private sector investors. Interestingly, we find a negative impact of bond market development on PPP investment. A possible interpretation is that financing through government bonds, which dominates bond markets in developing countries, discourages private sector participation by reducing financing access to the corporate bond market. Our evidence underlines the importance of a well-functioning corporate bond market in developing countries, which can offer long-term financing to private sector participation in infrastructure investments.
Subjects: 
bond market development
government bond
public-private partnership
JEL: 
E20
G10
H00
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
361.74 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.