Impact Of Infrastructure Investment Research Articles

Impact of provincial infrastructure investment on the vulnerability of social-ecological system in China

The impact of infrastructure investment on social-economic system or ecological system has been widely discussed, yet, the overall impact of infrastructure investment on social-ecological system (SES) is still unknown. This study summarized the impact mechanism of infrastructure investment on social ecosystem vulnerability. We first sorted out the impact mechanism of infrastructure investment on SES vulnerability, and then empirically analyzed the effect of provincial infrastructure investment on SES vulnerability by using spatial autocorrelation and spatial econometric models on the basis of accounting provincial per capita infrastructure capital stock and comprehensive evaluation of SES vulnerability. The results showed that the infrastructure capital stock per capita at provincial level increased significantly during 2004-2017, with a spatial pattern that the north was higher than the south and the east/west was higher than the middle in China. The provincial SES vulnerability was improved, with spatial distribution characteristics of gradually getting worse from east to west in China. There was positive spatial correlation between provincial infrastructure investment and SES vulnerability, with aggregation distribution characteristics. There was inverted U-shaped relationship between infrastructure investment and SES vulnerability in China, that was, the appropriate investment of infrastructure at early could decrease SES vulnerability, while over-investment would increase it. Our results revealed the overall impact mechanism and dynamic characteristics of infrastructure investment on SES vulnerability, and could provide theoretical and policy-making support for the coordination of infrastructure construction and SES vulnerability governance at the macro level for China.

Impact of Infrastructural Investments on the Development of the Railway Sector in the European Union Countries

Identification of railway transport as a key element of sustainable and effective transport showcases the necessity of strengthening the role it plays, both on the EU policy level as well as in the EU Member States. The consequence of such a policy is strong financial support allocated to the railway sector, e.g. in the form of infrastructural investments. This leads to questions on the efficiency of such support and its influence on the railway sector. In this respect, the analysis of the public support impact on railway transport in relation to variables describing the condition of this sector has been conducted. The analysis was focused on the evaluation of the impact of railway infrastructure investments. The results indicate significant differences in the effects among particular countries, illustrating the heterogeneous impact of an independent variable on measures concerning transport performance in passenger and freight services (passenger-kilometre and tonne-kilometre). Countries with higher support for infrastructure investments, in general, achieve better results in respect to the above-mentioned measures. Nevertheless, the strength of this impact is highly differential, which indicates the necessity of increasing the efficiency of infrastructural investments in the railway sector in particular countries.

The development of transport infrastructure of the Rostov-on-Don Oblast: The current state and priorities

Subject. The paper considers the current state and priorities of the transport infrastructure development of the Rostov-on-Don region with an emphasis on the effects of national and regional projects implementation. Objectives. The study overviews the statistical analysis of the current state of transport infrastructure in the Rostov-on-Don region, identifying key problems, determining the prospects and risks of implementing infrastructure transport projects. Methods. The methods of statistical and economic analysis are used. The available statistical indicators of the transport sector for 2000–2019 are analyzed. Results. The impact of infrastructure investment on economic growth is higher in regions with better-designed regional policies. At the same time, this conclusion only highlights the complexity of the channels through which infrastructure affects economic performance, as well as the problems that this complexity creates for empirical research. Studies on the relationship between infrastructure and economic growth have not produced definitive results. There is a positive correlation between the availability of regional transport infrastructure and availability of developed transport systems and economic indicators, for example, GRP. However, this correlation may reflect historical agglomeration processes, etc., rather than the current causal relationships. Conclusions and Relevance. The complex of infrastructural restrictions of the transport infrastructure of the Rostov region is the congestion of highways, the exhaustion of load-bearing road capacity and, as a result, the reduction of the transport permeability of the entire agglomeration. These problems put the implementation of projects to improve the transport and operational condition of the existing network of public roads, bringing the technical parameters and the level of engineering equipment of roads in line with the achieved traffic intensity levels among the priority tasks. The main tool for achieving the strategic goal is the Safe and High-Quality Roads national project. The implementation of the Rostov-on-Don Transport Ring project will also have a positive impact on the economic security of the region's road transport infrastructure.

INFRASTRUCTURE PROJECTS’ ASSESSMENT THROUGH SDG TARGETS: TOWARDS a COMPREHENSIVE FRAMEWORK

The achievement of the United Nations’ Sustainable Development Goals (SDGs) is of paramount importance “for the peace and prosperity for people and the planet, now and in the future” (United Nations, 2015; Økland, 2015). Important changes are needed in order to achieve these goals, and infrastructure projects (IP) are critical to facilitate these changes at local and global levels, across health, energy, education, transport, communication and other critical infrastructure needs. However, a gap exists in understanding how SDGs are applied below the global-national levels. In order to increase global and local impact of infrastructure investments, an improved understanding is needed at organisational and infrastructure project levels. In this context, the purpose of this research study is firstly to build on a comprehensive literature review to investigate the existing UN SDG targets in relation to IP, and secondly, to lay a foundation for a comprehensive framework to structure research systematically in this field. This approach can help further our understanding of the topic, thereby providing an important contribution for regulators, policymakers, academia and practitioners on how to align IP to SDGs objectives. This will deliver increased value from infrastructure investments and enable the project management community to generate local impact on global issues, for ‘people and the planet, now and in the future’.

The impact of rural infrastructural investment on farmers' income growth in China

PurposeThe purpose of this paper is to propose and verify the influence mechanism of various kinds of infrastructure investment on farmers' income in rural China. It further analyzes the effect of rural infrastructure investment on rural economic transformation.Design/methodology/approachThis research is used to GMM model to verify the relationship between infrastructure investment and farmers' income; furthermore, the mediating effect model is used to verify the linear conduction mechanism, and panel threshold model is used to verify the nonlinear conduction mechanism.FindingsThe results show that: (1) Rural infrastructure investment can indirectly affect farmers' income by changing land efficiency and land use structure; (2) The impact of infrastructure investment on farmers' income is nonlinear; (3) Increasing infrastructural investment of productivity and transportation will contribute to accelerating the transformation of rural economy.Originality/valueThis paper expands the research on the impact of rural infrastructure investment on farmers' income; it analyzes the inner mechanism and enriches the research contents in this field; the influence of various infrastructure investment on rural economic transformation is further discussed; it provides policy suggestions and theoretical basis for accelerating the transformation of China's rural economy.

The impact of infrastructure investment on economic growth in the United Kingdom

Infrastructure investment has long been held as an accelerator or a driver of the economy. Internationally, the UK ranks poorly with the performance of infrastructure and ranks in the lower percentile for both infrastructure investment and GDP growth rate amongst comparative nations. Faced with the uncertainty of Brexit and the likely negative economic impact this will bring, infrastructure investment may be used to strengthen the UK economy. This study aims to examine how infrastructure funding impacts economic growth and how best the UK can maximize this potential by building on existing work.The research method is based on interviews carried out with respondents involved in infrastructure operating across various sectors. The findings show that investment in infrastructure is vital in the UK as it stimulates economic growth through employment creation due to factor productivity. However, it is critical for investment to be directed to regional opportunity areas with the potential to unlock economic growth and maximize returns whilst stimulating further growth to benefit other regions. There is also a need for policy consistency and to review UK infrastructure policy to streamline the process and to reduce cost and time overrun, with Brexit likely to impact negatively on infrastructure investment.

Влияние инвестиций в проекты государственно-частного партнерства на уровень экономического благосостояния федеральных округов РФ

The article substantiates the impact of investment in infrastructure in general and public-private partnership (PPP) projects in particular on the level of economic welfare of the Russian Federation’s federal districts. Quantitative research, including correlation analysis and regression models, determines the direction and degree of influence of investments in PPP projects on the GRP per capita on the scale of each federal district. Correlation analysis revealed a close positive relationship between the target feature and the variable of interest for most federal districts of the Russian Federation. Regression models based on the calculation of GRP using the expenditure method and thus ensuring the relevance and interpretability of calculations show a significant positive impact of investments in PPP projects on the level of economic welfare in the Federal districts of the Russian Federation. The impact of investments in PPP projects on the target feature identified in the study allows us to recommend a forced increase in the number of infrastructure projects implemented on the PPP principles, taking into account the benefits from this mechanism for all economic entities.

The impact of infrastructure investments on income inequality: Evidence from US states

AbstractOur analysis of US state‐level data on an annual frequency, from 1976 to 2008, sheds new light on a plausible causal link between infrastructure investments, namely public spending on highways, and income inequality. This causal relationship is drawn out using the number of seats in the US House of Representatives Committee on Appropriations (HRCA) as an instrument to identify quasi‐random variations in state‐level spending on highways. An exogenous pattern which emerges when a state gains an additional member to the HRCA is that it is allocated with new federal grants. This increase in federal transfers for infrastructure financing results in slashing of expenditures on highways and a crowding‐out effect of federal funding for state investments on highways. Spending cuts on highways produced by a new HRCA member being attained by a state can unwittingly cause income inequality to rise over a short 2‐year time horizon. Similar challenges with decentralized development to finance infrastructure via federal transfers to state and sub‐national governments may be encountered by other industrially advanced, emerging and low‐income developing economies. US data over the mentioned period reveal a strong positive correlation with state spending on highways and wages paid for construction jobs. Suggestive evidence indicates that the construction sector also plays an important role in the transmission channel from a rise in state spending on highways to lowering income inequality, albeit during specific intervals, as opposed to on a long‐term basis.

Impact of infrastructure investment on developed and developing economies

This paper uses two longitudinal datasets—one with more limited coverage from the organization for economic co-operation and development and another constructed using general government gross fixed capital formation—to test for the relative effects of infrastructure versus non-infrastructure investment on output per worker, between developed and developing economies. The paper presents evidence that increasing infrastructure per worker has a larger relative impact on developing economies. This also implies that the share of gross capital formation devoted to infrastructure should be higher in developing economies.

Impacto de la inversión en infraestructura sobre la pobreza en Latinoamérica en el período 1996-2016

Impacto de la inversión en infraestructura sobre la pobreza en Latinoamérica en el período 1996-2016

The Impact of Infrastructure Investments on Income Inequality: Evidence from US States

An in-depth econometric analysis of US state-level data on an annual frequency, from 1976 to 2008, sheds new light on a plausible causal link between infrastructure investments, namely public spending on highways, and income inequality. This causal relationship is drawn out by using the number of seats in the US House of Representatives Committee on Appropriations (HRCA) as an instrument to identify quasi-random variations in state-level spending on highways. An exogenous pattern which emerges when a state gains an additional member to the HRCA is that it is allocated with new federal grants. This increase in federal transfers for infrastructure financing results in slashing of expenditures on highways and a crowding-out effect of federal funding for state investments on highways. Spending cuts on highways produced by a new HRCA member being attained by a state can unwittingly cause income inequality to rise over a short two-year time horizon. Similar challenges with decentralized development to finance infrastructure via federal transfers to state and sub-national governments may be encountered by other industrially advanced, emerging and low-income developing economies. US data over the mentioned period reveal a strong positive correlation with state spending on highways and wages paid for construction jobs. Suggestive evidence indicates that the construction sector also plays an important role in the transmission channel from a rise in state spending on highways to lowering income inequality, albeit during specific intervals, as opposed to on a long-term basis.

Examining the Relationship between Diffrent Modes of Infrastructure Financing and Economic Growth in India

With an aim to achieve a status of 5 trillion economy, India has to fulfil the criteria of achieving minimum 9%+ growth rate consistently for next five years. But at present, the economic indicators of India reflect a dismal picture to achieve that goal. The economic growth rate of India has gone down to almost five percent in first quarter of financial year 2019-20. Since the opening up of the Indian economy in 1991, the role of private sector in reviving the country’s growth cannot be overstated. Expanding investment in infrastructure is often projected as a weapon which can play a counter cyclical role in the phase of such economic crisis. In an attempt to analyse the impact different modes of investment in infrastructure on economic growth of India, this paper examines the trend of investments by private as well as both public and private (joint) since 1990s. Further, a time series econometric analysis is carried out for a period of twenty-eight years (1990-2018) wherein the nexus between investments (primarily in transportation and energy sector) and economic growth of India (GDP per capita) is examined. To examine the dynamic relationship between the variables, their causality, exogeneity and comparability, the Vector auto regression (VAR) model, along with the Forecast Error Variance Decomposition (FEVD) and Vector Error Correction Model (VECM) is used. The results of VAR and VECM suggests that there is significant impact of investment in infrastructure upon economic growth of India.

The Evolution and Impact of Infrastructure in Middle-Income Countries: Anything Special?

ABSTRACTWe examine the evolution of infrastructure, and the impact of infrastructure investment, in middle-income countries (MICs). We document how different types of infrastructure stocks, as well as infrastructure investment, vary with the level of development and growth performance. We then use the two-stage approach of Corsetti, Meier, and Müller (2012) to identify exogenous public investment shocks and investigate the macroeconomic impact of these shocks. We find that the provision of infrastructure varies across development stages; there is a focus on basic infrastructure, such as transport, water, and sanitation, during early stages, and an emphasis on “advanced” infrastructure, such as power and especially information and communication technology, in later stages. Better-performing MICs tend to invest more on infrastructure. They also have more information and communication technology infrastructure. Finally, we find a more significant and sustained impact of exogenous public investment shocks on output in MICs than in low-income countries.

The Role and Impact of Infrastructure in Middle-Income Countries: Anything Special?

We examine the evolution of infrastructure, and the impact of infrastructure investment, in middle-income countries (MICs). We document how different types of infrastructure stocks, as well as infrastructure investment, vary with the level of development and growth performance. We then use the two-stage approach of Corsetti, Meier, and Muller (2012) to identify exogenous public investment shocks and investigate the macroeconomic impact of these shocks. We find that the provision of infrastructure varies across development stages; there is a focus on basic infrastructure, such as transport, water, and sanitation, during early stages, and an emphasis on “advanced” infrastructure, such as power and especially information and communication technology, in later stages. Better-performing MICs tend to invest more in infrastructure. They also have more information and communication technology infrastructure. Finally, we find a more significant and sustained impact of exogenous public investment shocks on output in MICs than in low-income countries.

Investing in Ontario's Infrastructure for Economic Growth and Prosperity

This paper documents the potential employment and other value-added benefits of infrastructure investments in Ontario. In particular, it details the impact of infrastructure investment as a counter-cyclical fiscal policy tool. A review of the recent literature reveals that infrastructure investment serves both as a tool for job creation and as a stimulus for the economy as a whole. During recessionary times infrastructure investments have been able to boost the economy and have served as a primary job creation tool, especially when the private sector investments have dried up. At the same time, these investments have produced the infrastructure necessary to support future economic growth. Published research also revealed that the input-output models have been the preferred tool to capture the relationship between infrastructure investments and their impact on economy. Thus, the primary aim of this paper is to illustrate the impact of infrastructure investment on job creation, GDP, and tax revenue in the Province of Ontario using an input-output model. The paper documents the results of a simulation exercise, using an input-output model of the Ontario economy based on a 2008 industry structure that estimated the economic impact of a $12-billion public sector (government) investment in non-residential building and engineering construction in Ontario. This infrastructure investment is estimated to have a $38.4-billion impact on the province’s economy. The $12-billion investment would create an estimated 203,000 jobs (person-years of employment) in the provincial economy, generate an estimated $10 billion in employment income and increase the provincial GDP by an estimated $18.5 billion. This investment would also generate an estimated $668.7 million in corporate taxes and $161.2 in personal income taxes. When the impacts are normalized to a $1-billion stimulus, the IO simulations revealed that during the 2008 recessionary period in Ontario, every billion dollar invested in non-residential building and engineering construction would create almost 17,000 new jobs. Of those, the model estimated 3,050 jobs in direct impact, 2,850 jobs in indirect impact, and 11,000 jobs in induced impact. These benefits are in addition to the longer term direct benefits of infrastructure investments that would result from the use of new or rehabilitated infrastructure. For instance, a $12-billion investment in transportation infrastructure could result in a significant improvement in accessibility and mobility in the region, and related improvements in labour and business productivity. The above-mentioned monetized impacts of infrastructure investments, however, are above and beyond the positive impacts on accessibility and productivity. Finally, the paper reviews transportation infrastructure plans for the Greater Toronto and Hamilton Area (GTHA) and discusses the investment tools identified recently by various agencies. The paper concludes that public-private partnerships for infrastructure development will promote greater use of private capital in the construction and development of public infrastructure. User fees and those taxes that are likely to modify consumer behaviour are recommended as the preferred tools for revenue generation to support the construction of new infrastructure. We recommend that sufficient funds should be made available for infrastructure development and renewal in Canada to maintain the competitiveness of Canadian businesses. The opportunity cost of not spending now reduces the productive capacity of the economy in the future, especially when public capital investments in infrastructure have the potential to generate immediate and substantial productivity gains.

The Impact of Infrastructure Investment to Coordinated Urban and Rural Development in China

The paper describes the impact of infrastructure investment to coordinated urban and rural development in China from three aspects. First, infrastructure investment can alleviate the question of ‘three rural issues’ of facilitating agriculture, boosting rural economy, and raising farmers’ income. Second, infrastructure investment can enhance production and living conditions of farmers, improve social undertakings and help build well-off society. Third, infrastructure investment can improve ecological environment in rural areas.

‘Like an act of God’: Land, water and social power in northern Pakistan1

This article uses a case study of the Salinity Control and Reclamation Project of Mardan, northern Pakistan, to critically examine how the impact of a rural infrastructure project designed to improve water delivery can be compromised by the distribution of land ownership. The article demonstrates that the positive impact of infrastructural investment on farm yields can be translated into much more limited gains in income when farmers must rent land in order to establish viable farms. The design of infrastructural investment must therefore integrate an understanding of the social and economic environment within which the investment is made. In particular, the ownership and control of land, and hence the structure of social power, must be evaluated.

The regional impact of infrastructure investment in Mexico

Looney R. and Frederiksen P. (1981) The regional impact of infrastructure investment in Mexico, Reg. Studies 15, 285–296. Using multiple regression analysis, production functions are estimated for Mexico to examine whether infrastructure's impact on GDP differs depending on the type of investment (economic or social overhead capital) or the type of recipient region (intermediate or lagging). This possibility has been suggested by Hansen. The states were grouped by means of cluster analysis. The results tend to confirm the Hansen thesis: economic overhead capital has had its greatest impact on GDP in intermediate regions while social overhead capital has had its greatest impact in lagging regions. A test for causality indicates that investment precedes income growth. Several policy recommendations are offered on the basis of these results.