Development Beyond Aid: Utilizing Comparative Advantage in the Belt and Road Initiative to Achieve Win-Win

Journal of Infrastructure, Policy and Development (2017) Volume 1, Issue 2, pp.149-167, DOI/10.24294/jipd.v1i2.68

Posted: 7 Dec 2018

See all articles by Yan Wang

Yan Wang

Cornell University; African Development Bank

Justin Y. Lin

Peking University - China Center for Economic Research

Date Written: October 10, 2017

Abstract

Against the backdrop of anti-globalization rhetoric, this paper summarizes our joint book entitled
Going Beyond Aid (Lin and Wang, 2017a) and discusses the prospects for development finance in
the broad context of Belt and Road Initiative (BRI). Based on the New Structural Economics (Lin,
2010; 2011), here we focus on China’s demonstrated comparative advantages in infrastructure, e.g.
in hydropower and high-speed railways (HSR). In addition, long-term orientation (LTO) and patient
capital are latent comparative advantages that many Asian economies possess, and are critical for
the Belt and Road Initiative. Only if these comparative advantages are utilized can these economies cooperate to potentially achieve win-win.

Keywords: infrastructure, comparative advantage, developing financing

JEL Classification: O10, F21, H54

Suggested Citation

Wang, Yan and Lin, Justin Yifu, Development Beyond Aid: Utilizing Comparative Advantage in the Belt and Road Initiative to Achieve Win-Win (October 10, 2017). Journal of Infrastructure, Policy and Development (2017) Volume 1, Issue 2, pp.149-167, DOI/10.24294/jipd.v1i2.68. Available at SSRN: https://ssrn.com/abstract=3264336

Yan Wang (Contact Author)

Cornell University ( email )

Ithaca, NY 14853
United States

African Development Bank ( email )

Rue Joseph Anoma
Abidjan, Ivory Coast 01 BP 1387
Ivory Coast (Cote D'ivoire)

Justin Yifu Lin

Peking University - China Center for Economic Research ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

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