Publication:
Measuring the Impact of Debt-Financed Public Investment

Simple item page
dc.contributor.authorCavalcanti, Carlos B.
dc.contributor.authorMarrero, Gustavo A.
dc.contributor.authorLe, Tuan Minh
dc.date.accessioned2014-03-18T20:15:36Z
dc.date.available2014-03-18T20:15:36Z
dc.date.issued2014-02
dc.description.abstractWhile debt-financed productive public investment raises a country s debt ratios in the short run, it can also generate higher growth, revenues, and exports, leading over time to lower debt ratios. This paper develops a framework to assess whether countries meet the conditions for realizing the net benefits over the costs of public investment debt financing. While it is possible to achieve debt sustainability with an appropriate mix of concessional and non-concessional financing, this is a necessary but not sufficient condition. It is also important to ensure the operational viability of public investment projects by having in place adequate project management: (i) project screening and appraisal, (ii) a clear connection between capital and recurrent expenditures once the projects are launched, and (iii) safeguards for appropriate project implementation and facilities operations. To illustrate the strength of these results, the paper carries out three measurement exercises: (a) a simulation of the degree to which the ratio of optimal public investment responds to changes in key parameters related to project management in a general equilibrium model; (b) application of the public investment management (PIMa) index to benchmark a country's public investment management capacity; and (c) presentation of the results of the Investment, Savings, and Macroeconomic Vulnerabilities tool aimed at tracking country choices in public finance and the impact of public projects on private investments.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/02/18895457/measuring-impact-debt-financed-public-investment
dc.identifier.doi10.1596/1813-9450-6766
dc.identifier.urihttps://hdl.handle.net/10986/17309
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6766
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCING
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE CAPACITY
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectARBITRAGE
dc.subjectAVERAGE DEBT
dc.subjectBALANCE SHEET
dc.subjectBANK LENDING
dc.subjectBANK LOAN
dc.subjectBANK POLICY
dc.subjectBANKS
dc.subjectBENCHMARK
dc.subjectBID
dc.subjectBONDS
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET SURPLUS
dc.subjectBUDGETING
dc.subjectCAPACITY BUILDING
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL ASSETS
dc.subjectCAPITAL BUDGETING
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL INVESTMENTS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL OUTLAY
dc.subjectCENTRALIZATION
dc.subjectCOMPETITIVE BIDDING
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCORRUPTION
dc.subjectCREDITORS
dc.subjectCREDITS
dc.subjectCREDITWORTHINESS
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT COMPOSITION
dc.subjectDEBT FINANCING
dc.subjectDEBT ISSUES
dc.subjectDEBT LEVELS
dc.subjectDEBT RATIOS
dc.subjectDEBT RELIEF
dc.subjectDEBT SERVICE
dc.subjectDEBTS
dc.subjectDEFAULT RISK
dc.subjectDEFICITS
dc.subjectDEPRECIATION
dc.subjectDERIVATIVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT BANK
dc.subjectDEVELOPMENT CORPORATION
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDISBURSEMENT
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNTED VALUE
dc.subjectDIVERSIFICATION
dc.subjectDOMESTIC DEBT
dc.subjectDYNAMIC ANALYSIS
dc.subjectEARNINGS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC EFFICIENCY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectECONOMIES OF SCALE
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectELECTRICITY
dc.subjectEQUALITY
dc.subjectEQUILIBRIUM
dc.subjectEUROBOND
dc.subjectEXCLUSION
dc.subjectEXOGENOUS VARIABLES
dc.subjectEXPENDITURE
dc.subjectEXPORTS
dc.subjectEXPROPRIATION
dc.subjectEXTERNAL COMMERCIAL BORROWING
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL VIABILITY
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL MANAGEMENT
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICY
dc.subjectFISCAL SURPLUS
dc.subjectFIXED ASSETS
dc.subjectFIXED CAPITAL
dc.subjectFIXED INVESTMENT
dc.subjectFUNCTIONAL FORMS
dc.subjectGDP
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGOVERNMENT INDEBTEDNESS
dc.subjectGOVERNMENT POLICY
dc.subjectGOVERNMENT SPENDING
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROSS FIXED CAPITAL FORMATION
dc.subjectGROWTH OPPORTUNITIES
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH RATE
dc.subjectHEALTH SPENDING
dc.subjectHIGH RISK BORROWERS
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD WELFARE
dc.subjectHOUSEHOLDS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME TAX
dc.subjectINCOME TAX RATE
dc.subjectINCOME TAXES
dc.subjectINCREASING RETURNS
dc.subjectINEFFICIENCY
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINFRASTRUCTURE INVESTMENTS
dc.subjectINITIAL DEBT
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINVENTORIES
dc.subjectINVESTING
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT FINANCING
dc.subjectINVESTMENT MANAGEMENT
dc.subjectINVESTMENT PLANS
dc.subjectINVESTMENT POLICIES
dc.subjectINVESTMENT POLICY
dc.subjectINVESTMENT PROJECTS
dc.subjectINVESTMENT SPENDING
dc.subjectINVESTMENT ­ ASSET
dc.subjectISSUANCE
dc.subjectJOB CREATION
dc.subjectLABOR MARKET
dc.subjectLENDING LIMITS
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOAN AGREEMENT
dc.subjectLOAN AGREEMENTS
dc.subjectLOW INTEREST RATES
dc.subjectMACROECONOMICS
dc.subjectMARGINAL PRODUCTIVITY
dc.subjectMARKET INTEREST RATES
dc.subjectMONETARY FUND
dc.subjectMULTIPLIERS
dc.subjectNATURAL RESOURCES
dc.subjectNORMAL GOOD
dc.subjectOPERATING COSTS
dc.subjectOUTSIDE ASSISTANCE
dc.subjectOUTSTANDING PUBLIC DEBT
dc.subjectPHYSICAL CAPITAL
dc.subjectPOLITICAL ECONOMY
dc.subjectPOSITIVE EXTERNALITY
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL STOCK
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE INVESTMENTS
dc.subjectPRIVATE SAVINGS
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVE CAPITAL
dc.subjectPROVISION OF INFRASTRUCTURE
dc.subjectPUBLIC
dc.subjectPUBLIC ASSETS
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC INVESTMENT IN INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT PROGRAM
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR WAGES
dc.subjectPUBLIC SPENDING
dc.subjectRATE OF RETURN
dc.subjectRATES OF RETURN
dc.subjectRATES OF RETURNS
dc.subjectREAL GDP
dc.subjectRECURRENT EXPENDITURES
dc.subjectREMITTANCES
dc.subjectRETURNS
dc.subjectROADS
dc.subjectSAVINGS
dc.subjectSHAREHOLDERS
dc.subjectSOVEREIGN BOND
dc.subjectSTATIC ANALYSIS
dc.subjectSTOCKS
dc.subjectTARIFF REVENUES
dc.subjectTAX
dc.subjectTAX EXEMPT
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAXATION
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRADING
dc.subjectUTILITIES
dc.subjectUTILITY FUNCTION
dc.subjectVALUATION
dc.subjectVALUE ADDED
dc.subjectWEALTH
dc.titleMeasuring the Impact of Debt-Financed Public Investmenten
dspace.entity.typePublication
okr.crossref.titleMeasuring the Impact of Debt-Financed Public Investment
okr.date.disclosure2014-02-01
okr.date.doiregistration2025-04-10T11:39:04.304081Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/02/18895457/measuring-impact-debt-financed-public-investment
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid994171468337274152
okr.identifier.doi10.1596/1813-9450-6766
okr.identifier.externaldocumentum000158349_20140203131911
okr.identifier.internaldocumentum18895457
okr.identifier.reportWPS6766
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/02/03/000158349_20140203131911/Rendered/PDF/WPS6766.pdfen
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPublic Sector Economics
okr.topicPublic Sector Development
okr.unitEconomic Policy and Debt Unit, Poverty Reduction and Economic Management Network
okr.volume1 of 1
relation.isAuthorOfPublication35337393-a7fb-5e96-9780-2c869ccd8ab4
relation.isAuthorOfPublication.latestForDiscovery35337393-a7fb-5e96-9780-2c869ccd8ab4
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS6766.pdf
Size:
1.11 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS6766.txt
Size:
94.6 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers