China's New Development Bank and Infrastructure-led Growth
Research report
Date
2016Metadata
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- NUPI Policy Brief [232]
- Publikasjoner fra Cristin - NUPI [1404]
Original version
NUPI Policy Brief 2016-18. NUPI, 2016Abstract
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.
Description
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