Whether Infrastructure Investment Can Still Light the Way for China's Economic Carriage?

Abstract

The treatment of economic crises is one of the key topics of research for economists today. China successfully solved this problem through infrastructure investment during the global recession in 2008. However, for the last few years, because of the enormous pandemic effects on the global economy, many economists remain doubtful about the usefulness of infrastructure investment. Therefore, this paper uses historical research and analysis of the current economic environment to find that China can make infrastructure investments applicable in the context of the epidemic through digital innovation, economic transformation, and productivity improvements. In addition, the 4 trillion-yuan investment can be still useful if combined with other policies such as the Belt and Road Initiative.