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
Date Written: October 10, 2017
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: Suggested Citation