Infrastructure Investment: Primary Effect And Spillover Analyses-case Study For Sinorussia Tongjiang Cross-Border Railway Bridge

The economical and political relationships between the People‘s Republic of China and Russian Federation have become stronger in the recent years. Two countries have many different sphere for collaborations, thus provides opportunities for further better development theirs economic facilities. ―One belt, one road‖ infrastructure policy is a great step and a new mechanism for strengthening the strategic partnership with China. In order to maintain infrastructure connection between China and Russia, the construction of a cross-border railway bridge began at February, 2014.The bridge will connect Tongjiang Port in northeast China’s Heilongjiang Province with the Russian village of Nizhneleninskoye. The bridge, designed with an annual passage capacity of 21 million tons, is expected to highly improve the transportation conditions of Tongjiang port. This paper aims to provide new insights of the infrastructure cooperation sphere and examine the impact of the current project‘s realization.This thesis illustrates key points of infrastructural investments, its role in the economy; provides information about major infrastructure developing process and investments impacts. We identify main obstacles which are corresponded with financing governmental projects together with private investments. Present research has also defined main principles of global infrastructural project ―One belt, one road‖ and its part ―Longjiang Silk Road‖. The paper provides analyses of primary effect of Sino-Russia railway bridge project. Estimation included calculation of the main indexes which prove the necessity of bridge construction from social and economic sides. The research also seeks to answer the main questions about spatial spillover effect. This was done by spatial correlation analyses of Moran Index, which describe whether spatial interference between neighbouring regions is not exist. Changes in international trade activities were recorded from 2010 till 2015, on the base of its analyses the possible forecast was made with taking to account the influence of spatial effect.Also this paper explains the main problems of the cross border infrastructure between China and Russia. Results define main possible way of further international trade process and region‘s ability to compete with neighbouring region for redistribution the international goods flows.