Cross-border infrastructure projects offer significant economic and social benefits for the Asia-Pacific region. If the required investment of $8 trillion in pan-Asian connectivity was made in the region’s infrastructure during 2010–2020, the total net income gains for developing Asia could reach about $12.98 trillion (in 2008 US dollars) during 2010–2020 and beyond, of which more than $4.43 trillion would be gained during 2010–2020 and nearly $8.55 trillion after 2020. Indeed, infrastructure connectivity helps improve regional productivity and competitiveness by facilitating the movement of goods, services and human resources, producing economies of scale, promoting trade and foreign direct investments, creating new business opportunities, stimulating inclusive industrialization and narrowing development gaps between communities, countries or sub-regions. Unfortunately, due to limited financing, progress in the development of cross-border infrastructure in the region is low.
This paper examines the key challenges faced in financing cross-border projects and discusses the roles that different stakeholders—national governments, state-owned enterprises, private sector, regional entities, development financing institutions (DFIs), affected people and civil society organizations—can play in facilitating the development of cross-border infrastructure in the region. In particular, this paper highlights the major risks that deter private sector investments and FDIs and provides recommendations to address these risks.
With the rapid development of digital technology, the digital infrastructure enables the rapid formation, modification and refactoring of digital products through continuous experimentation and implementation, reduces the cost of innovation, and facilitates the implementation of digital innovation. To solve the problem that the technical scope of digital innovation is relatively concentrated and the knowledge flow between the achievements of digital innovation is insufficient, this study investigates the impact of digital infrastructure on organizational digital innovation in China. The cross-sectional study was conducted from November 2023 to March 2024 among 384 employees and managers in the core industries of the digital economy, as well as enterprises in traditional industries in China. Data were collected using closed-ended questionnaires adapted from previous literature. Structural equation modelling (SEM) was employed to analyze the data using SPSS 28 and AMOS 28. The results reveal that both the information infrastructure and the innovation infrastructure have a positive and direct effect on organizational digital innovation in China, as well as an indirect effect through data flows. Converged infrastructure has only an indirect impact on organizational digital innovation through the flow of data.
To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.
This study aims to discover the relationship between growth sales, capital structure, and corporate governance on financial performance of energy and basic material sector public companies in Indonesia. Financial performance is observed from 2 aspects: market performance (Tobin's Q) and profitability performance (ROA). The population in this study is firms in the energy and basic material sector on Indonesia Stock Exchange. The total population is 248 firms. 39 firms were selected as samples. The data is obtained from the annual report which starts from the period 2018 to 2022. A total of the population was determined as samples by purposive sampling method. Data analysis using panel data regression. The result shows: 1) Growth Sales have a significant influence on market performance; however, it does not have a significant effect on profitability performance. 2) Capital Structure significantly influences market and profitability performance 3) Corporate governance significantly influences market and profitability performance. Suggestions for companies that must strive to increase sales, maintain good corporate governance and pay attention to the company's capital structure in a balanced manner.
Intra-regional trade serves as a key growth engine for East Asian economies. Accompanying the rapid growth of bilateral and intra-regional trade ties, the East Asian economies are becoming increasingly connected and interdependent. Infrastructure connectivity plays a crucial role in bridging different areas of the East Asian region and enabling them to reap the full socioeconomic benefits of economic cooperation and integration. Nevertheless, further improvement of infrastructure in the region faces major challenges due to the lack of effective mechanisms for coordination and dialogue on regional integration through funding infrastructure projects, as well as the serious trust deficit among member states that has arisen from the on-going territorial and historical disputes.
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