Impact of foreign infrastructure investments on the construction industry in developing countries

Suyash Padhye and Makarand Hastak

Chapter 6 in Research Companion to Advances in the Construction Industry in the Global South, 2026, pp 118-146 from Edward Elgar Publishing

Abstract: The global infrastructure sector is experiencing significant growth due to multilateral investments under programs such as the Belt and Road Initiative (BRI) and the G7 Partnership for Global Infrastructure and Investment (PGII). These investments span across multiple sectors, including transportation (roads, rail, airports, ports) and energy (fossil fuels and renewables), aiming to enhance trade and connectivity among nations. In this chapter, the impact of foreign infrastructure investments on the construction industry in developing countries is examined. The drivers and benefits for host and investor countries are outlined. Data from the American Enterprise Institute (AEI) and AidData are analyzed to discuss trends in sectors, values, investment years, stakeholders, and troubled transactions. Case studies from Kazakhstan, Pakistan, and Greece illustrate the role of China's Port–Park–City model in the development of major infrastructure corridors. Multi-criteria decision models for such large projects, and a seven-layer infrastructure framework to guide sustainable infrastructure development are discussed.

Keywords: Infrastructure corridors; Belt and Road Initiative; Risk management; Urban development; International infrastructure development; Multilateral infrastructure partnerships (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035349012
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