Financing Power Infrastructure in a Developing Economy: An Exploratory Factor Analysis Approach
Authors: Emmanuel Ayorinde, Jeffrey Mahachi, Clinton Aigbavboa, Ntebo Ncogbo
Abstract: Power infrastructure development plays a fundamental role in nations building and economic growth, and it influences both developed and developing countries. This study assesses the mode of financing power infrastructure in a developing economy. Adopting a quantitative approach, data was retrieved through the use of questionnaire. The target population of the study were professionals saddled in the affairs of implementing policies on power infrastructure. Mean Item Score and Factor analysis served as the methods of data analysis. The study revealed that the most effective ways of financing power infrastructure are public-private partnership; also revealed from the factor analysis is three major constructs that serves as the major ways of financing power projects which are development mechanisms, public-private sources, and foreign financing mechanisms. Conclusively, the study outlined that the weight and strength required to develop power infrastructure effectively is enormous in nature, it is therefore imperative that government institutions find a lasting and effective solution to the problem of power infrastructure financing. Ultimately this will help improve economic profile and social development of a developing economy. This study contributes to the power infrastructure and social development of developing economies. This will help improve electricity security in developing economy since financing power infrastructure effectively is one of the major problem facing development in Africa.
Keywords: Economic growth, Infrastructure financing, Developing economy, Social development, Power development
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