Article ID Journal Published Year Pages File Type
987082 Review of Financial Economics 2010 11 Pages PDF
Abstract

This study investigates the role of project finance as a driver of economic growth. We hypothesize that project finance is beneficial to the least developed economies as it is able to compensate for a lack of domestic financial development. The contractual structure unique to project finance leads to better investment management and governance. Investigating 90 countries from 1991 to 2005, we find support for our hypothesis. Results show that project finance fosters economic growth and that its effect is strongest in low-income countries, where financial development and governance is weakest.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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