Development beyond aid: Utilizing comparative advantage in the belt and road initiative to achieve win-win

Justin Yifu Lin ,Yan Wang

doi:10.24294/jipd.v1i2.68

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Development beyond aid: Utilizing comparative advantage in the belt and road initiative to achieve win-win

Justin Yifu Lin

Yan Wang

Journal of Infrastructure Policy and Development 2017, 1(2), 68; https://doi.org/10.24294/jipd.v1i2.68

Submitted：04 Jul 2017

Accepted：12 Jul 2017

Published：09 Aug 2017

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Abstract

Against the backdrop of anti-globalization rhetoric, this paper summarizes our joint book entitled Going Beyond Aid (Lin and Wang, 2017a) and discusses the prospects for development finance in the broad context of Belt and Road Initiative (BRI). Based on the New Structural Economics (Lin, 2010; 2011), here we focus on China’s demonstrated comparative advantages in infrastructure, e.g. in hydropower and high-speed railways (HSR). In addition, long-term orientation (LTO) and patient capital are latent comparative advantages that many Asian economies possess, and are critical for the Belt and Road Initiative. Only if these comparative advantages are utilized can these economies cooperate to potentially achieve win-win.

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