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Beyond Keynesianism: Global Infrastructure Investments In Times Of Crisis

Author

Listed:
  • JUSTIN YIFU LIN

    (Development Economics, The World Bank, Washington DC 20433, USA)

  • DOERTE DOEMELAND

    () (Development Economics, The World Bank, Washington DC 20433, USA)

Abstract

Concerns have been raised that the "new normal" — a period of high unemployment, low returns on investment, high risks, and low growth — may become protracted in advanced economies. The world, therefore, needs a growth-lifting strategy. This strategy could take the form of a global infrastructure investment initiative that goes beyond the borders of advanced countries. Economic returns to infrastructure investments are high in developing countries, which have become important drivers of global growth. At the same time, infrastructure investments require capital goods, most of which are produced in high-income countries. Scaling up infrastructure investment in developing countries could, therefore, help generate a virtuous cycle in support of a global recovery.

Suggested Citation

  • Justin Yifu Lin & Doerte Doemeland, 2012. "Beyond Keynesianism: Global Infrastructure Investments In Times Of Crisis," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-29.
  • Handle: RePEc:wsi:jicepx:v:03:y:2012:i:03:n:s1793993312500159
    DOI: 10.1142/S1793993312500159
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    References listed on IDEAS

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    Cited by:

    1. Dinkelman, Taryn & Schulhofer-Wohl, Sam, 2015. "Migration, congestion externalities, and the evaluation of spatial investments," Journal of Development Economics, Elsevier, vol. 114(C), pages 189-202.
    2. Peter Drysdale & Sébastien Willis, 2014. "International Institutions and the Rise of Asia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(3), pages 455-469, September.

    More about this item

    Keywords

    Infrastructure; growth; financial crisis; fiscal policy; E61; E62; O18;

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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