The objective is to determine the impact of economic growth on the externalities of infrastructure investments for the Peruvian case for the periods from 2000 to 2022. The methodologies used are descriptive, explanatory and correlational, analyzing qualitative and mainly quantitative methods. Econometric software was used, and correlations of variables were created for each proposed hypothesis. The estimated model shows that all the independent variables have a significant t-statistic greater than 2 and a probability of less than 5%, which indicates that they are significant and explains the model. The R2 is 98.02% which indicates that there is a high level of explanation by the independent variables to the LOG(RGDP). The results of the estimated models demonstrate the existence of a positive and significant relationship of investments in infrastructure and externalities on the growth of the non-deterministic component of real GDP, therefore, in a practical way, private and public investment has a positive effect on the non-deterministic growth of real GDP.
The Moroccan economy has undergone significant structural changes since the 1980s. Attracting Foreign Direct Investment (FDI) has been a key strategy for the country’s economic growth and development, particularly in some specific high value-added sectors, such as the automotive supply industry. This paper uses the results of a survey to examine the reasons why multinational enterprises (MNEs) in the automotive supply sector set up in Morocco. Our findings show that proximity to Europe and labor costs and skills are the most important considerations for investing in this sector in Morocco. However, some institutional issues are still of concern to these MNEs.
Cross-border infrastructure projects offer significant economic and social benefits for the Asia-Pacific region. If the required investment of $8 trillion in pan-Asian connectivity was made in the region’s infrastructure during 2010–2020, the total net income gains for developing Asia could reach about $12.98 trillion (in 2008 US dollars) during 2010–2020 and beyond, of which more than $4.43 trillion would be gained during 2010–2020 and nearly $8.55 trillion after 2020. Indeed, infrastructure connectivity helps improve regional productivity and competitiveness by facilitating the movement of goods, services and human resources, producing economies of scale, promoting trade and foreign direct investments, creating new business opportunities, stimulating inclusive industrialization and narrowing development gaps between communities, countries or sub-regions. Unfortunately, due to limited financing, progress in the development of cross-border infrastructure in the region is low.
This paper examines the key challenges faced in financing cross-border projects and discusses the roles that different stakeholders—national governments, state-owned enterprises, private sector, regional entities, development financing institutions (DFIs), affected people and civil society organizations—can play in facilitating the development of cross-border infrastructure in the region. In particular, this paper highlights the major risks that deter private sector investments and FDIs and provides recommendations to address these risks.
The Middle East and North Africa (MENA) region faces unique challenges and opportunities in integrating sustainability into sovereign credit assessments. This research study examines environmental, social, and governance (ESG) factors embedded in the lending policies of jurisdictional institutions in MENA. By analyzing existing literature and case studies, we identify key drivers and barriers to ESG integration in sovereign lending. Our findings suggest a growing recognition of sustainability’s importance in financial stability and credit, driven by global climate guarantees and local socio-economic development. However, challenges such as data availability, regulatory frameworks, and market acceptance persist. This paper provides an overview of current practices, highlights best practices, and offers recommendations to enhance ESG integration in sovereign debt reviews in the MENA region. The study concludes that a robust ESG framework is necessary to accurately reflect the long-term risks and opportunities associated with sovereign debt, ultimately contributing to sustainable economic growth regionally.
While infrastructure provides necessary public services and is vital for the socio-economic development of a nation, public funds alone cannot finance all infrastructure needs in society, especially after the COVID-19 pandemic, where many countries are facing budget deficits. Although private financing schemes, such as public-private partnerships (PPPs) and land value capture, have been considered intensively, they have yet to produce adequate private capital flows to infrastructure projects due to a lack of incentives for private investors. Against the background, this paper proposes a new financing mechanism in which governments might divert some of the increased tax revenue from the spillover effects of newly constructed infrastructures to fund the private sector through grants or subsidies. The empirical work in Vietnam shows a significant increase in tax revenues after completing two expressways, supporting our idea about spillover effects, which includes small- and medium-sized enterprise (SME) development. This study’s results suggest that spillover effects can bring new opportunities for governments and multilateral development banks (MDBs) to implement infrastructure projects with greater private sector involvement in the region. It also proposes some financial schemes, such as land capture and financing for business startups, including SMEs, to enhance the spillover effects of infrastructure.
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