Abstract This study analyzes the impact of a high-speed rail line on tax revenues and on the economy of affected regions within the country. The economic impact of infrastructure investment can be induced by changes in tax revenues when the infrastructure is in operation. Accurate regional GDP data are not necessarily available in many Asian countries. However, tax data can be collected. Therefore, this study uses tax revenue dates in order to estimate spillover effects of infrastructure investment. The Kyushu high-speed rail line was constructed in 1991 and was completed in 2003. In 2004, the rail line started operating from Kagoshima to Kumamoto. The entire line was opened in 2011. We estimated its impact in the Kyushu region of Japan by using the differencein- difference method, and compared the tax revenues of regions along the high-speed railway line with other regions that were not affected by the railway line. Our findings show a positive impact on the region’s tax revenue following the connection of the Kyushu rapid train with large cities, such as Osaka and Tokyo. Tax revenue in the region significantly increased during construction in 1991–2003, and dropped after the start of operations in 2004–2010. The rapid train’s impact on the neighboring prefectures of Kyushu is positive. However, in 2004–2013, its impact on tax revenue in places farther from the rapid train was observed to be lower. When the Kyushu railway line was connected to the existing high-speed railway line of Sanyo, the situation changed. The study finds statistically significant and economically growing impact on tax revenue after it was completed and connected to other large cities, such as Osaka and Tokyo. Tax revenues in the regions close to the high-speed train is higher than in adjacent regions. The difference-in-difference coefficient methods reveal that corporate tax revenue was lower than personal income tax revenue during construction. However, the difference in corporate tax revenues rose after connectivity with large cities was completed. Public–private partnership (PPP) has been promoted in many Asian countries. However, PPP-infrastructure in India failed in many cases due to the low rate of return from infrastructure investment. This study shows that an increase of tax revenues is significant in the case of the Kyushu rapid train in Japan. If half of the incremental tax revenues were returned to private investors in infrastructure, the rate of return from infrastructure investment would significantly rise for long period of time. It would attract stable and long-term private investors, such as pension funds and insurance funds into infrastructure investment. The last section of the paper will address how incremental tax revenues created by the spillover effects of infrastructure will improve the performance of private investors in infrastructure investment.

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.

Abstract Inadequate infrastructure has been widely viewed as a principal barrier to growth and development in Latin America and the Caribbean. This paper provides a comprehensive overview of infrastructure in the region and highlights key areas in which infrastructure networks can be enhanced. The public and private sectors play complementary roles in improving the infrastructure network. Therefore, it is critical to strengthen public investment management processes as well as the regulatory framework, including to ensure and appropriate mix of financing and funding for projects and to address environmental concerns.

Abstract Contemporary infrastructure research has its origins in the late 1980s as attempts were made to measure the economic impact of public expenditures with early mixed results. In the 1990s, infrastructure assumed greater importance as a policy solution to improve economic performance in low-income economies particularly by multilateral development and official development agencies. This interest led to greater research interest with the examination of infrastructure and economic development, foreign direct investment, the role of institutions and capital markets, procurement, regional economic effects and more recently, the productivity of public investment in specific regions and industries.  This article identifies subjects that warrant further research in the future particularly the shortfall in current investment levels and how this will be met. This is a challenge for both low and high-income countries with fiscal and public debt constraints requiring governments to tap alternative sources of finance. Policy options available to government include wider use of bond markets and private participation in infrastructure provision and management. Other problems facing government include optimism bias and forecasting error that is a particular problem for projects in the transport sector.  Many other research opportunities remain to be explored and this article is designed to provide an overview of several of the subjects that would benefit from further research at the present time. 

Abstract In this paper, we argue that there is much room for China to strengthen its regulatory framework for public-private partnerships (PPPs). We show that infrastructure projects carried out through local government financing vehicles (LGFVs) are largely unregulated PPPs, and significant fiscal risks have already manifested themselves. While PPPs can potentially provide efficiency gains, they can also be used by governments to circumvent budgetary borrowing constraints. Therefore, effective PPP regulation is key to delivering PPPs’ benefits while containing their potential fiscal risks. The authorities have taken concrete steps in order to establish a sound regulatory framework and foster a new generation of PPPs. However, to make the framework effective, we highlight a few issues to be resolved. Based on international best practice, we propose a four-pillar regulatory framework for China, which could be implemented gradually in three stages.

Abstract The paper lays out basic design options for infrastructure policy. It first sketches mechanisms to assess demand. Then it sets out a hierarchy of issues starting with choice of market structure followed by conduct regulation. Ownership options are largely a function of market structure choices. The implications for finance—the topic of much day-to-day discussion in infrastructure policy-making—follow from these various prior choices. The discussion naturally circumscribes the role for the so-called public-private partnerships, their uses and pitfalls.

Abstract India and China have a competitive yet cooperative relationship. India has not signed on to the Belt and Road Initiative as it has concerns over some aspects of it-especially the China-Pakistan Economic Corridor and the Maritime Silk Road-and has proposed its own "Spice Route" or SAGAR project, with India at the centre of Indian Ocean relations. Nevertheless, India has joined the new financial institutions of the New Development Bank, the Asian Infrastructure Investment Bank (AIIB) (as its second largest shareholder after China) and most recently the Shanghai Cooperation Organisation (SCO). These new banks are a potential source of long-term infrastructure finance for India, however small in magnitude. China and India have growing, yet somewhat unbalanced, economic linkages-with a large trade deficit in favour of China. This paper explores how China and India can contain their contentious issues as they find ways to cooperate for mutual benefit.

Abstract

Abstract Although infrastructure is widely recognized as a key ingredient in a country’s economic success, many issues surrounding infrastructurespending are not well understood. This paper explores six themes: the returns to infrastructure; the role of the private sector; the evaluation and delivery of infrastructure in practice; the nature of network industries, pricing and regulation; political economy considerations of infrastructure provision; and infrastructure in developing countries. This paper aims to provide insights into many of these questions, drawing on the existing literature.