Research On The Participation Of Private Capital In Infrastructure Construction Of One Belt And One Road In China

Infrastructure construction is the focus of One Belt and One Road.Most countries along the route need to build a large number of infrastructures,which has a huge requirement of financial investment.However,current fund supply is mainly from the government,including the Asian Investment Bank,Silk Road Fund,along with other international financial institutions.They provide limited funds,which cannot meet the needs of infrastructure construction of One Belt and One Road.As a result,there will be a big funding gap.However,after years of development,domestic private capital has become quite abundant.Therefore,in the face of the huge funding gap of infrastructure,civil capital is in urgent need of participation.This paper firstly tries to construct the theoretical framework of domestic private capital participation in the infrastructure construction of One Belt and One Road,which is based on Public Goods Theory and Foreign Direct Investment Theory.Secondly,this paper tries to analyse the financing gap of infrastructure construction of One Belt and One Road by analysing its supply and demand.Then,aiming at some unfavourable factors of domestic private capital participation in the infrastructure construction of One Belt and One Road,such as low return rate,high entry threshold,high risk and illiquidity,this paper suggests that domestic private capital should apply PE-PPP,P2 G and theme bond model in their participation of the infrastructure construction of One Belt and One Road.Finally,this paper puts forward some political suggestions to promote the participation of domestic private capital in the construction of infrastructure along the route.The innovation of this paper lies in three following respects.firstly,it constructs the theoretical framework of domestic private capital participation in the infrastructure construction of One Belt and One Road,and provides strong theoretical guidance for the practice.Secondly,by applying supply and demand analysis,it quantifies current infrastructure financing gap of One Belt and One Road.Thirdly,aiming at the difficulties of domestic capital participation in the infrastructure construction of One Belt and One Road,this paper proposes three kinds of solutions: PE-PPP,P2 G and issuing the theme debt.Moreover,to propose the detailed path of participation of the domestic private capital,it is necessary to consider the differences among the countries along the route.