A Comparative Study On The Effects Of Infrastructure Investment In BRIC

In the post-crisis era,the global economy is witnessing a deep adjustment,and the economic development for developing countries faces many challenges and bottlenecks.On the one hand,loose monetary policy and re-industrialization policy made by developed countries make amount of money flow out of developing countries;on the other hand,the economic development of developing countries is also facing so many problems,for example,it is difficult to make economic structural adjustment,the traditional advantage is gradually weakened,export expansion faces much more pressure,and government power is excessive concentration and so on.In this context,infrastructure investment can not only promote economic growth in the host country even in the world,but also be beneficial for the host economy to upgrade industrial structure and economic structure,so as to promote the sustained and stable economic development.Lin in the Boao Forum for Asia(BFA)proposes that increasing infrastructure investment in developing countires can not only be beneficial to eliminate the bottlenecks in developing countries and to bring high economic and social benefits for them,but also can promote the demand of the developed countries for capital goods,and thereby creating employmeng,income and growth in develoed countries.In G20 Hangzhou Summit,Xi Jinping points out that the developing countries should strengthen infrastructure investment and cooperation,and give full play to the radiation effect and driving effect of infrastructure to promote the recovery and growth of global economy.Therefore,improving the level of infrastructure has become an important way to achieve economic growth and transformation in developing countries.The reasons why this dissertation selects the "BRIC" for the study are as the following three aspects.First,compared to other countries,the "BRIC" have unique advantages in terms of large land area,rich resources endowment,amount of cheap labors and huge markets' deed,and they are the most representatives of the developing economies and emerging economies.Second,the "BRIC" are the four as well as the largest developing countries in the world,there are some similarities in their economic level,development potential and development model,and hence they are high comparable.Third,the "BRIC" are all in a critical period of economic restructuring and transformation,the comparative study on these four countries is in favor of countries to take to offset,and strengthen cooperation on the aspect of infrastructure investment to more effectively promote their own economic restructuring and development.The comparative study on the spillover effect of infrastructure investment in "BRIC"has important theoretical and practical significance.In theory,it can help to enrich the studies in the area of the relationship between infrastructure investment and the economic development of the host country,and further expand the research connotation of economic growth theory,as well as providing a reference for the researches by other scholars.In practice,this dissertation contributes the government of "BRIC" to making scientific,rational,and targeted policy,accelerating the transformation of economic growth mode.This dissertation is based on the existing literature review and statistical data collection,to study the issue and use of methods to adapt to the principle,the main use of comparative research,macro and micro analysis,normative and empirical research method of combining.This dissertation is organized into the following four sections.The first section of the dissertation is chapter 1,namely the introduction.This part is introduction and bedding for the entire dissertation.This part is mainly to clarify the topic background,research significance,technical route,research methods,structural arrangements and the innovations and shortcomings,as well as a comprehensive and system review on the current research results,which lays foundation for the later analysis.The second section of the dissertation is chapter 2,namely the scale of investment analysis.Based on 2000-2013 statistics data,this part makes comparative analysis on their infrastructure investment inflows and investment stock.Sepcially,energy infrastructure investment,transportation infrastructure investment,communications infrastructure investment,education infrastructure and sanitation infrastructure investment flows and stocks are compared respectively.And the last content of this part draws a comprehensive conlusion on BRIC's infrastructure investment levels.The third section of the dissertation includes chapters 3-8,namely the empirical analysis on the spillover effect of infrastructure investment in "BRIC".This part is the core content of the whole dissertation.This section combines theory models with and econemetric models to make empirical comparative study for the capital formation effect of infrastructure investment,economic growth effect of infrastructure investment,technology soil effect of infrastructure investment,enterprise production cost-saving effect of infrastructure investment,industry boost effect of infrastructure investment and export effects of infrastructure investment,and based on these analysis to make conclusion.The fourth section of the dissertation is chapter 9,namely,conclusions and policy recommendations.Based on the view of the foregoing,this part systematically draws general conclusions,and makes policy recommendations.The innovation of this dissertation is mainly reflected in the following three aspects.Firstly,infrastructure is the foundation for the development of the national economy,while taking a deep study of the impact of BRIC's infrastructure on economic growth depends on a complete set of BRIC's infrastructure investment data.Currently,in addition to the United States,other countries and international official statistical database does not publish these statistic data.This desertation is based on the relevante data from "World Input-Output Table" to estimate BRIC's infrastructure investment,which provides a reliable historical data for the further study of the impact of BRIC's infrastructure investment on economic growth.Secondly,the existing literatures mainly examine the impact of infrastructure investment on economic growth from the macro level,the dissertation starts at industry level to make an in-depth study of the microscopic mechanism of how BRIC's infrastructure investment impacts economic growth.This is the most important innovation of the desertation.Based on BRIC's 34 industry data,the BRIC's capital forming effect,production cost savings effect and industrial driving effect of infrastructure investment are studied in detail,providing a new perspective to understand the microscopic mechanism of BRIC's economic growth.Thirdly,on the basis of the overall study,the dissertation also makes compared study on the "BRIC" different types of spillover effect of infrastructure investment such energy,transportation,telecommunications,education and health respectively,and draw some useful conclusions:BRIC's energy infrastructure investment can promote economic growth,promote the development of secondary industry and increase export volumes,but the energy infrastructure investment cannot increase total factor productivity levels and export of the complexity,indicating that "resource curse" does exist;transport and communications infrastructure investment have significant positive effects on economic growth,technology spillover,the tertiary industry,export volumes and export complexity;and differnt national education and health infrastructures investment has quite different spillover effects.There are some shortcomings in the dissertation,and they are as following.Firstly,since the literature review language limitations,the literature review of this dissertation is mainly based on Chinese and English,it lacks relevant research on infrastructure investments in Russian and Portuguese-based,which would affect the literature review's richness and informative nature to some extent.Secondly,this dissertation focuses more on comparative study on the spillover effect of infrastructure investment in "BRIC",the optimal investment in infrastructure scale,the best investment area,the optimal policy tools and the problem of financing way are still needed to study in the further.