Optimization Research On The Financing Model Of Asian Infrastructure Investment Banks

With the rise and development of the Belt and Road,China has brought a new round of driving force for the growth of the Asian economy.In order to improve the level of infrastructure construction in Asia,the China-led Asian Infrastructure Investment Bank(referred to as the AIIB)was established.Its main purpose is to help the infrastructure construction of Asian developing countries,promote regional interconnection and economic integration,and promote the further development of the Asian economy and the world economy.The AIIB is a quasi-commercial bank dedicated to pursuing financial stability and achieving sustainable development.The soundness of AIIB's finance depends on the development of its financing business.Due to the short time of the establishment of the AIIB and the lack of international financing experience,there are some problems in the current Financing Bank's existing financing model,which needs to be optimized.At present,the AIIB faces problems such as large financing costs,single financing model,low utilization rate of private capital,and unsound dispute settlement mechanism.Therefore,the optimization study of the AIIB financing model is of great significance.The optimization of the AIIB financing model is mainly reflected in two aspects.First,the AIIB should improve the existing financing model.Second,the AIIB needs to introduce a new financing model,PPP(Public Private Partnership)financing model to incite a large amount of private capital.,providing financial support for infrastructure construction.Based on the analysis of the feasibility of the introduction of the PPP financing model by the AIIB,using panel data from 40 Asian countries from 2000 to 2017,the fixed-effects model was used to empirically study whether the AIIB can use the PPP model to incite private capital.The research results show that the MDB's investment behavior in PPP projects is conducive to the promotion of private capital participation in PPP project investment,and the AIIB can use PPP financing mode to mobilize private private capital.In addition,the level of economic development and government management efficiency of a country also affects the enthusiasm of private capital to participate in PPP projects.Therefore,the AIIB should not only optimize the existing financing model,but also improve the relevant mechanisms of the PPP model,use the PPP model to incite a large amount of private capital,expand the funding sources for infrastructure construction in Asia,and gradually fill the funding gap for infrastructure construction in Asia,andpromote the better operation and development of the AIIB.