Assessing the impact of infrastructure financing on economic growth in emerging markets

Tanuj Tayeng, K. Hinoca Assumi, Samitha Khaiyum, Ruhul Amin, Purvi Shah, Abhijit Chandratreya, Sunita Dhote

Article ID: 9560
Vol 8, Issue 15, 2024

VIEWS - 69 (Abstract) 28 (PDF)

Abstract


The objective of this paper is to analyze the impact of infrastructure financing on economic growth in emerging markets through the application of both quantitative and qualitative research methodologies. In this study, the research will employ both primary and secondary data to investigate the impact of different structures of infrastructure financing on the performance of the economy through interviews with the stakeholders and policy documents alongside quantitative data from the World Bank and the IMF. The quantitative analysis employs the econometric models to establish the effect of infrastructure investment on the GDP growth of the selected countries, India, China, Brazil, and Nigeria. Additional secondary qualitative data obtained from interviews with policymakers and financial specialists from Brazil, India, and South Africa offer more practical information regarding the efficiency of the discussed financing approaches. This paper is therefore able to conclude that appropriate management of infrastructure investments, particularly those that involve the PPP, are central to the development of the economy. However, certain drawbacks such as the lack of regularity of data and the disparity in the effectiveness of financing instruments by the regions are pointed out. The research provides policy implications to policymakers and investors who wish to finance infrastructure in the emerging economy to enhance economic growth in the long run.


Keywords


infrastructure financing; economic growth; emerging markets; public-private partnerships; econometric analysis

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DOI: https://doi.org/10.24294/jipd9560

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