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China’s New Development Bank and Infrastructure-led Growth
Yang Jiang 2016-09-02
Abstract
In view of China’s recent launch of several new development banks (AIIB, OBOR, NDB) with a central focus on infrastructure, this NUPI Brief takes a look at how China’s infrastructure projects have fared both at home and abroad in the past. It asks the question: Does economic growth, boosted by infrastructure investment, necessarily benefit development?
Admitting that infrastructure has played a crucial role in China’s development, as well as contributed to the changes in other developing countries, this brief cautions against several potential economic risks. To be more specific, three issues are highlighted: first, low usage and low profitability; second, debt and broken contracts; third, favouritism towards state-owned companies.
이전글 | 글로벌 게임산업 트렌드 (2016년 2분기) | 2016-09-02 |
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다음글 | Stories of Coal Phased-Out: Lessons learned for China | 2016-09-02 |