Financing of infrastructures in Latin America

Abstract

The goal of this issue of the Network Industries Quarterly is to identify the conditions for the capital and money markets to increase their participation in the infrastructure financing process. Furthermore, the chapters illustrate examples of different forms of infrastructure financing. The first article by Jorge Alcaraz and Adriana Castro provides an overview on foreign direct investment as a source for infrastructure building, focusing on how governments from Latin American countries could improve the effects of these investments. The second article by Francisco Javier Valderrey and Miguel Ángel Montoya presents an overview of Chinese investments in Latin America and the challenges and consequences of this. In the third article Luis Arturo Bernal Ponce and Ricardo Pérez Navarro analyse the effect of public and private investment in infrastructure on economic growth in emerging countries, using Mexico from 2006 to 2016 as the case study. Brazil is instead the case study used by Joisa Dutra and Vivian Figer to shade lights on the future of electric utilities in Latin America. Finally, the article by Irina Alberro and Doreen Vorndran presents an innovative mechanism of financing social development: Social Impact Bonds have received attention across the world and in Mexico to address the challenges that youth faces.