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Chinese Urban Infrastructure Financing

Posted on:2002-12-22Degree:MasterType:Thesis
Country:ChinaCandidate:H T WangFull Text:PDF
GTID:2206360065450447Subject:Finance
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With the expediting globalization,the future economic growth will be based on urbanization,market penetration and internationalization. Among the features,the urbanization period started to play a dominant role. In view of the relevant international experience,the period of per capita GDP reaching US$600 -2,000 is a primary period of expediting urbanization process. Many experts believe that urbanization will become the heart piece of China's economic development within die future 20-50 year. Urbanization has become one of the primary driving forces for the future economic growth in China. The rapid urbanization has also brought about higher requirements on urban infrastructure in terms of quality and quantity. At the current stage,China is still in the transitional period from a centrally planning economy to a market-oriented economy. A viable urban infrastructure system that meets the basic needs of a market economy is just taking shape.Over the past decades,government has been responsible for the planning,financing,construction,operation and maintenance of urban infrastructure in China. Despite the remarkable increase of investment in urban infrastructure since the 1980s,the pace of urban infrastructure development substantially lags behind the soaring needs arising from the fast growing urban population and improving standards of living. The gap in urban infrastructure development has constituted the bottleneck for social and economic development in Chinese cities and has placed negative impact on urban investment environment as well.Therefore the reform in the financing,construction and operation of urban infrastructure in China must be pursued vigorously. Various types of urban infrastructure should be differentiated according to their intrinsic economic characteristics. A multi-tiered financing system must be formed and the investor profiles must be diversified. This dissertation discusses different types of financing such as government fiscal subsidy,policy financing,capital market,official development assistance and foreign direct investment with a particular focus on capital market and build-operate-transfer (BOT) scheme. This dissertation also introduces the emerging means of financing for urban infrastructure,for example concession,lease financing. All the above means of financing for urban infrastructure have their own strengths and weakness and specific fields of application. Different ways of financing or a mix of selected means of financing should be taken into account when a concrete urban infrastructure project is planned and implemented.In the paper the author first gives a systematic introduction to Chinese urbanization process and the challenges associated with the financing of urban infrastructure construction;second,summarizes the international experiences in urban infrastructure development;third,discuss such subjects as government fiscal inputs,public financing,capital market,foreign capital utilization,and private capital mobilization,and last but not the least analyze the barriers to facilitating investments from private capitals in urban infrastructure and related policy recommendations. The sevean chapters in the dissertation are as follows:Chapetr 1:Preface describes the urbanization process in China,the challenges associated with urban infrastructure construction,historical review of the sources ofChapter 2:International Experiences in Financing of Urban Infrastructure Development discusses the Japanese and American practices in financing of urban infrastructure construction,the r.an?,pcment of IPVCS'ITY:.' in urban infrastructure in France and Germany;and the practices of BOT (iiuiiu-Operate-'iransicij as a primary means of private investment in both developed countries and developing countries.Chapter 3:Government Fiscal Expenditure and Publicly Subsidized Financing of Urban Infrastructure is divided into two parts:government fiscal expenditures and public financing. The first part about government fiscal expenditure analyses the major driving forces for gove...
Keywords/Search Tags:Urban infrastructure, financing, capital market, foreign capital, project financing
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