Research On Promotion Of PPP To Infrastructure Construction In Countries Along The "Belt And Road"

In the past 40 years of reform and opening up,China has enjoyed the institutional dividends of rapid economic growth and industrial production capacity improvement in an open economic environment.At the current historical background of the sluggish international economic environment and the rise of trade protectionism,China has proposed the “The Belt and Road Initiative” to provide international public goods and share the development results of the open economy.At the same time,the vast number of developing countries along the B&R also are full of expectations for the B&R.Most of the developing countries hope to ease their domestic financial pressure,expand the scale of infrastructure,improve infrastructure efficiency and promote economic development through the B&R.In this context,it is a theoretical and practical issue to verify whether the application and promotion of the PPP model in the past 30 years in developing countries has alleviated fiscal pressure,improved infrastructure efficiency and economic growth.And the issue should be empirically tested and addressed in the future to promote “The Belt and Road Initiative” initiative.This paper attempts to examine and analyze the mechanism of the relationship between the infrastructure scale and infrastructure efficiency,on the basis of the overview and assessment of the economic growth effect of the PPP in the countries along the “Belt and Road”.Finally,based on the national data along the line,the mechanism is tested from the perspective of empirical research.The full text is divided into 7 chapters:Chapter 1 is an introduction and literature review.This chapter describes the background and significance of the research,research content,research methods and innovations,then summarizes the theoretical research and empirical research on PPP impact infrastructure,which lays the foundation for the later mechanism analysis and research framework of the paper.Chapter 2 contains related concepts and theoretical analysis.This chapter defines the scope of related concepts and divides the possible effects of PPP into four aspects: promoting economic development,easing financial pressure,improving infrastructure efficiency and risk amplification.Through these effects,PPP is related to the economic performance of the existing literature,and through theoretical analysis,the paper proves the mechanism of affecting fiscal pressure and infrastructure efficiency.The subsequent empirical tests are based on the theoretical analysis.The third chapter is the analysis for the current situation of the infrastructure along the B&R countries from the perspectives of the development of PPP mode,the promotion and application of countries along the line,and the existing problems.Chapter 4 is an empirical test of PPP's promotion of economic development.Chapter 5 is an empirical test of the mechanisms.This chapter conducts empirical tests for the hypothesis of relieving the financial pressure on PPP to expand the scale of infrastructure and improving the efficiency of infrastructure.Firstly,in the fiscal mechanism test,the financial pressures faced by the scale of infrastructure are divided into short-term pressure and long-term pressure.Secondly,in the improvement of infrastructure efficiency,the efficiency of ICT infrastructure efficiency along the route is measured,and the efficiency index is decomposed into Malmquist index.Chapter 6 is a risk analysis for advancing the PPP model in the B&R process.This chapter makes further expantion on the basis of the efficiency mechanism model,and outlines the risk characteristics in the PPP model from the perspective of risk-raising and moral hazard.Chapter 7 is conclusions and policy recommendations.Through the research of this paper,the following conclusions are obtained:Firstly,the infrastructure under the PPP model has significantly contributed to economic growth for the countries along the B&R.The infrastructure of energy infrastructure,information infrastructure and private capital participation in the form of PPP has a significant effect on the economic growth of countries along the B&R,and the factors such as FDI,foreign trade,industrial structure have shown significant economic effect in the countries along the B&R.Secondly,the mitigation effect of PPP on fiscal pressure is not obvious,and there are obvious limitations.If PPP is used as a tool to alleviate fiscal pressure,it may cause the risk of government debt in the long run.Moreover,the PPP model is closely related to the market environment and legal environment of a country.Countries along the B&R should speed up the transformation of government functions and create a good investment environment and systematic construction.Thirdly,the improvement of infrastructure efficiency in the PPP depends on its relative comparative advantages in information and technology for the private sector.At the same time,the constraints on capital costs will limit the economic effects.Therefore,B&R initiative should be promoted in the future.It is necessary to break the financing constraints and institutional discrimination of the private sector,strengthen multilateral support for the private sector,and increase the investment and construction of “soft infrastructure”.Fourthly,the PPP model also has exchange rate risk,opportunistic behavior and moral hazard in the process of the B&R.In the future,Chinese enterprises and governments need to adhere to cooperation and openness to prevent the moral hazard of host enterprises and governments.