Foreign Direct Investment in Cross-Border Infrastructure Projects

30 Pages Posted: 4 Apr 2011

See all articles by K. C. Fung

K. C. Fung

University of California at Santa Cruz

Alicia García-Herrero

Bruegel; Hong Kong University of Science & Technology (HKUST) - HKUST Institute for Emerging Market Studies (IEMS); Natixis

Francis Ng

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2011

Abstract

In this paper the authors critically review the relevant information and literature that can enhance the feasibility and the successful implementation of cross-border infrastructure projects. They provide detailed information concerning foreign direct investment in the major emerging regions: East Asia and the Pacific, Latin America, and Eastern Europe. They also discuss the theoretical and empirical literature which sheds light on the characteristics of transnational infrastructure projects, who should conduct them, and what determines their existence. The literature points to the importance of government involvement in transnational infrastructure projects as there are clear external benefits which will otherwise not be reaped. It also points to the importance of coordination for the success of the project. The Asian Development Bank is well placed to perform that role. Lastly, they provide six cases of cross-border infrastructure projects, two each from East Asia, Latin America, and Eastern Europe. These cases illustrate the critical need for smooth coordination of the diverse groups of team players, top-level backing of the projects, as well as a thorough understanding of all the political and financial factors involved that can influence the success of these projects.

Keywords: cross-border infrastructure, transnational infrastructure projects, foreign direct investment, East Asia Pacific

JEL Classification: O19, F15, F36, R58

Suggested Citation

Fung, K.C. and Garcia-Herrero, Alicia and Ng, Francis, Foreign Direct Investment in Cross-Border Infrastructure Projects (April 1, 2011). ADBI Working Paper No. 274, Available at SSRN: https://ssrn.com/abstract=1800472 or http://dx.doi.org/10.2139/ssrn.1800472

K.C. Fung (Contact Author)

University of California at Santa Cruz ( email )

Santa Cruz, CA 95064
United States
831-459-3273 (Phone)
831-459-5900 (Fax)

Alicia Garcia-Herrero

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium, 1210
Belgium

Hong Kong University of Science & Technology (HKUST) - HKUST Institute for Emerging Market Studies (IEMS) ( email )

IAS 2019, Lo Ka Chung Building,
Lee Shau Kee Campus, HKUST
Clear Water Bay, Kowloon
Hong Kong

Natixis ( email )

France

Francis Ng

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-8088 (Phone)
202-522-1159 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/fng

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
214
Abstract Views
1,287
rank
173,227
PlumX Metrics