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

Authors

DOI:

https://doi.org/10.17811/ebl.9.3.2020.157-166

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.

Author Biographies

Iordanis Petsas, Department of Economics and Finance University of Scranton

Associate Professor and Chair,

Department of Economics and Finance

Kania School of Management

University of Scranton

Scranton, PA, USA

Sofia M Vidalis, Penn State Harrisburg, Harrisburg, PA, USA

Associate Professor of Civil Engineering

Department of Civil Engineering/Structural Design & Construction Engineering Technology

Penn State Harrisburg, Harrisburg, PA, USA

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2020-12-13

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How to Cite

Petsas, I., & Vidalis, S. M. (2020). The role of foreign investment in U.S. infrastructure: opportunities and challenges ahead. Economics and Business Letters, 9(3), 157–166. https://doi.org/10.17811/ebl.9.3.2020.157-166