Lemutov V.A. TECHNOLOGY AS A DRIVER OF ECONOMIC DEVELOPMENT: RISKS AND PROSPECTS OF THE NEW INFRASTRUCTURE POLICY IN THE PRC

The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 3/2023. Publications of young authors.

Vasily A. Lemutov

postgraduate student of International Economic Relations Department at the Institute of Asian and African Studies, Lomonosov Moscow State University, Moscow, Russia

TECHNOLOGY AS A DRIVER OF ECONOMIC DEVELOPMENT: RISKS AND PROSPECTS OF THE NEW INFRASTRUCTURE POLICY IN THE PRC

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Abstract

The author analyzes the new infrastructure development policy in the PRC, which implies the implementation of high-tech infrastructure projects aimed at digitalization and development of science. Similar to previous government infrastructure programs, it is intended to be a tool to stimulate economic growth. The prevalence of business investment over state funding, as well as the lower required amount of investment (less than RMB 20 trillion over 5 years) compared to traditional infrastructure, may reduce debt risks. However, relatively low utilization of new infrastructure facilities and the lack of a proven link between ICT investment and economic growth in less developed regions indicate that new infrastructure is unlikely to make the economic development of PRC regions more even.

Keywords: China, technology, ICT, digitalization, infrastructure, economic growth, regional development.

JEL: O38, O53

EDN: WZXLUV

DOI: https://doi.org/10.52180/2073-6487_2023_3_127_150

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Manuscript submission date: 19.04.2023

For citation:

Lemutov V.A. Technology as a driver of economic development: risks and prospects of the new infrastructure policy in the PRC // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2023. № 3. Pp. 127-150. (In Russ.). https://doi.org/10.52180/2073-6487_2023_3_127_150 EDN: WZXLUV

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