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Enhancing Financial Connectivity Between Asia and Europe: Implications for Infrastructure Convergence Between the Two Regions

Author

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  • Naoyuki Yoshino

    (Keio University, Tokyo 2-15-45 Mita Minato-ku Tokyo, Japan 108-8324)

  • Monzur Hossain

    (Bangladesh Institute of Development Studies E-17 Agargoan, Sher-e-Bangla Nagar Dhaka 1207, Bangladesh)

  • Farhad Taghizadeh-Hesary

    (Tokai University, Tokyo 4-1-1 Hiratsuka Kanagawa 259-1292 Japan)

Abstract

This paper explores the methods and policies that could enhance the financial connectivity between Europe and Asia in infrastructure investments. We argue that if Asian governments agree to enter into a long-term repayment commitment with a share of spillover tax revenues of public infrastructure projects under a regulatory framework, it could attract European long-term institutional funds in Asia's infrastructure projects. This approach will reduce divergence in infrastructure between the two regions and encourage regional connectivity. With some empirical evidence, this paper highlights the operational risks and methods of sharing spillover revenue for infrastructure projects.

Suggested Citation

  • Naoyuki Yoshino & Monzur Hossain & Farhad Taghizadeh-Hesary, 2020. "Enhancing Financial Connectivity Between Asia and Europe: Implications for Infrastructure Convergence Between the Two Regions," Asian Economic Papers, MIT Press, vol. 19(2), pages 84-101, Summer.
    • Handle: RePEc:tpr:asiaec:v:19:y:2020:i:2:p:84-101
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    Cited by:

    1. Farhad Taghizadeh-Hesary & Naoyuki Yoshino & Han Phoumin, 2021. "Analyzing the Characteristics of Green Bond Markets to Facilitate Green Finance in the Post-COVID-19 World," Sustainability, MDPI, vol. 13(10), pages 1-24, May.
    2. Taghizadeh-Hesary, Farhad & Sarker, Tapan & Yoshino, Naoyuki & Mortha, Aline & Vo, Xuan Vinh, 2021. "Quality infrastructure and natural disaster resiliency: A panel analysis of Asia and the Pacific," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 394-406.

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    More about this item

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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