Role of Institutional Arrangements in Financing Project Companies in Asia

نویسنده

  • Dr. K. A. K. Devapriya
چکیده

Within institutional economics perspective of project finance, this paper empirically examines the potential influence of factors on debt capacity in project companies when financed through bankdominated financial systems with weak legal, regulatory and political institutions. The econometric results confirm that in order to capture the potential debt capacity of project companies financed through project finance arrangements in weak institutional environments, credit enhancements in the form of participation by multi-lateral/bilateral institutions, supplemented with specifically created institutional and informational infrastructure are frequently employed. These findings highlight the effectiveness of institutional and contractual arrangements in long-term investment schemes in infrastructure development. JEL Classification: G19, G21, G39, K49, L29.

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تاریخ انتشار 2003