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The role of foreign investment in U.S. infrastructure: opportunities and challenges ahead

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  • Iordanis Petsas
  • Sofia M Vidalis

Abstract

The U.S. infrastructure has been issued a grade of D+ from the American Society of Civil Engineers because of the low funding for new construction, maintenance, and repair. It is now reaching the end of its useful life and cost estimates have reached as high as $3.6-trillion. The public infrastructure investment is at 2.4% of GDP, which is half of what it was 50-years ago. The U.S. has explored new ways to finance its infrastructure because of funding uncertainty. Investments such as, pensions, foreign investments, and sovereign wealth funds, manage trillions in assets and are forecasted to grow. This paper presents an overview in infrastructure funding and identifies possible approaches in addressing long-term financial needs with foreign capital partnership.

Suggested Citation

  • Iordanis Petsas & Sofia M Vidalis, 2020. "The role of foreign investment in U.S. infrastructure: opportunities and challenges ahead," Economics and Business Letters, Oviedo University Press, vol. 9(3), pages 157-166.
    • Handle: RePEc:ove:journl:aid:14295
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    References listed on IDEAS

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    1. Holmes Mark J. & Panagiotidis Theodore, 2009. "Cointegration and Asymmetric Adjustment: Some New Evidence Concerning the Behavior of the U.S. Current Account," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-25, June.
    2. Congressional Budget Office, 2018. "Public Spending on Transportation and Water Infrastructure, 1956 to 2017," Reports 54539, Congressional Budget Office.
    3. Balding, Christopher, 2012. "Sovereign Wealth Funds: The New Intersection of Money and Politics," OUP Catalogue, Oxford University Press, number 9780199842902.
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