Publication:
Public Investment Quality and Its Implications for Sovereign Risk and Debt Sustainability

Simple item page
dc.contributor.authorAdarov, Amat
dc.contributor.authorPanizza, Ugo
dc.date.accessioned2024-08-23T14:18:49Z
dc.date.available2024-08-23T14:18:49Z
dc.date.issued2024-08-23
dc.description.abstractThis paper introduces a novel index to measure public investment quality, utilizing the World Bank’s investment project performance data from 120 countries over 2000–21. After detailing the construction of the index, the paper examines how public investment quality influences the relationship between the level of public investment and sovereign risk. The findings show that high levels of public investment are linked to lower sovereign risk in countries with high investment quality and, conversely, to higher sovereign risk in countries with low investment quality. This relationship is especially pronounced in sub-investment grade countries. These results are corroborated by showing that when public investment quality is high, scaling up public investment enhances fiscal sustainability by reducing the ratio of debt to gross domestic product in the long run: high-quality public investment is self-financing. However, the opposite is true when public investment quality is low, where increased public investment results in a deterioration of fiscal fundamentals.en
dc.identifierhttp://documents.worldbank.org/curated/en/099750208212442814/IDU1d7f63b5716348142de187a1152abdf7e4224
dc.identifier.doi10.1596/1813-9450-10877
dc.identifier.urihttps://hdl.handle.net/10986/42078
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10877
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC INVESTMENT QUALITY
dc.subjectSOVEREIGN RISK
dc.subjectDEBT SUSTAINABILITY
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.titlePublic Investment Quality and Its Implications for Sovereign Risk and Debt Sustainabilityen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titlePublic Investment Quality and Its Implications for Sovereign Risk and Debt Sustainability
okr.date.disclosure2024-08-23
okr.date.lastmodified2024-08-22T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099750208212442814/IDU1d7f63b5716348142de187a1152abdf7e4224
okr.guid099750208212442814
okr.identifier.docmidIDU-d7f63b57-6348-42de-87a1-52abdf7e4224
okr.identifier.doi10.1596/1813-9450-10877
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10877
okr.identifier.externaldocumentum34380103
okr.identifier.internaldocumentum34380103
okr.identifier.reportWPS10877
okr.import.id5140
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099750208212442814/pdf/IDU1d7f63b5716348142de187a1152abdf7e4224.pdfen
okr.region.geographicalWorld
okr.sectorCentral Government (Central Agencies)
okr.themeInclusive Growth,Economic Policy,Green Growth,Public Finance Management,Economic Growth and Planning,Fiscal Policy,Domestic Revenue Administration,Public Sector Management,Fiscal sustainability,Urban and Rural Development,Macroeconomic & Structural Policy Modelling,Disaster Risk Management
okr.topicMacroeconomics and Economic Growth::Economic Investment & Savings
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicFinance and Financial Sector Development::Strategic Debt Management
okr.unitProspects Group (DECPG)
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:
IDU1d7f63b5716348142de187a1152abdf7e4224.pdf
Size:
2.13 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU1d7f63b5716348142de187a1152abdf7e4224.txt
Size:
152.82 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