[journal of infrastructure, policy and development] the new structural economics: patient capital as a comparative advantage-ag官网

justin yifu lin and yan wang 

abstract：

the world economy needs a growth-lifting strategy, and infrastructure financing seems to hold the key. based on the new structural economics (lin, 2010; 2012) we discuss the heterogeneity of capital focusing on the long-term versus short-term orientation (sto). traditional neoliberalism assumes that capital is homogenous, complete capital account liberalization is “beneficial”. however, previous studies have found evidence of long-term orientation (lto) in the culture of many asian economies (hofstede, 1991). in this exploratory paper, we suggest that the lto can be considered a special endowment which, under certain circumstances, can be developed into a comparative advantage (ca) in patient capital. if these countries can turn their latent ca into a revealed ca in patient capital, and develop the ability to “package” profitable and non-profitable projects in meaningful ways, they would have a “revealed” competitive advantage in infrastructure financing. the ability to “package” public infrastructure and private services is one of the key institutional factors for success in overseas cooperation.

keywords: patient capital; long-term orientation; infrastructure financing; development