The authors are grateful to Shokraneh Minovi and Shelly Hahn of the World Bank for making its private participation in infrastructure database available to them, and to Kalpana Seethepalli and Jorge Rivera for commenting on previous drafts of this article. The opinions and conclusions are, however, theirs alone, and should not be attributed to the organisations with which they are affiliated.
Private Provision of Infrastructure in Emerging Markets: Do Institutions Matter?
Version of Record online: 14 FEB 2006
Development Policy Review
Volume 24, Issue 2, pages 175–202, March 2006
How to Cite
Banerjee, S. G., Oetzel, J. M. and Ranganathan, R. (2006), Private Provision of Infrastructure in Emerging Markets: Do Institutions Matter?. Development Policy Review, 24: 175–202. doi: 10.1111/j.1467-7679.2006.00321.x
- Issue online: 14 FEB 2006
- Version of Record online: 14 FEB 2006
- first submitted February 2005, final revision accepted December 2005
Governments in developing countries have encouraged private sector investment to meet the growing demand for infrastructure. According to institutional theory, the role of institutions is paramount in private sector development. A longitudinal dataset of 40 developing economies between 1990 and 2000 is used to test empirically how different institutional structures affect private investment in infrastructure, in particular its volume and frequency. The results indicate that property rights and bureaucratic quality play a significant role in promoting private infrastructure investment. Interestingly, they also suggest that countries with higher levels of corruption attract greater private participation in infrastructure.