Impacts of investments in infrastructure projects on emerging markets’ growth: the case of East African countries

Abstract

The purpose of the paper is to research fast-growing economies of East Africa regarding conditions and effects of infrastructure investments in various sectors and their influence on socio-economic growth. The paper aims to provide insights, knowledge and a rudimentary blueprint of how Least Developed Countries can take the first step to initiate dynamic economic growth. An important question is which infrastructure project should be financed with the limited available funds of an emerging market. The authors discuss various infrastructure projects, related conflicts, political issues, social impacts and the growing dependence on international influences. The structure of investment in East Africa and its economic playground with different trade agreements, NGOs Aid Programmes and Development Foundations, as well as International Agreements for development aid is often difficult to understand and its outcome is difficult to measure. So, the foundation of this paper will be built on in-depth interviews and statistical research based on the development theories of Emerging Markets. The authors were able to demonstrate an influence of infrastructure investments on economic and human development by a high positive correlation. In addition, 10 out of 13 analysed infrastructure characteristics showed a significantly positive moderate, high or very high correlation with economic growth.