In a study titled “Complementing Economic Advances in India: A New Approach in Financing Infrastructure Projects,” SMU Finance Professor Andrew Chen and co-author Jennifer Warren Kubik have proposed an innovative solution to improving India’s infrastructure that has significant implications for capital markets and development. “For India to continue growth on a sustainable path, investment in infrastructure is critical. Infrastructure bottlenecks are seen as one of the leading obstacles for India in realizing its economic growth potential,” the authors say. Yet such development could cost the Indian government as much as $500 billion and will require substantial financing. Chen and Kubik suggest approaching the problem by raising capital through initial public offerings (IPOs) and securitizations globally. This approach, coupled with financial innovations, could help smooth the frictions which lay at the root of India’s infrastructure development problems, the authors add. “Infrastructure spending in India is particularly politicized and could gain efficiencies through the benefits of global capital markets rather than at the hands of political agendas,” they write. Read the executive summary at the Cox School of Business’ faculty research site.
Latest Faculty & Staff News
- Cox School of Business rises 16 places in The Economist‘s global M.B.A. rankings October 20, 2016
- ‘Why Standing Rock Matters’ is topic for Clements Center panel discussion Monday, Oct. 24, 2016 October 18, 2016
- Fred Chang inducted into National Academy of Engineering in D.C. ceremony October 13, 2016
- Acclaimed authors Bernice L. McFadden and Tyehimba Jess to read at SMU’s 2016 Kimbilio Litfest Thursday, Oct. 13 October 13, 2016
- Just Mercy author Bryan Stevenson gives two lectures at SMU Thursday, Oct. 13, 2016 October 13, 2016