Infrastructure and economic development in developing economies

Abstract

Purpose The purpose of this paper is to empirically investigate the impact of infrastructure on economic development in developing economies. Design/methodology/approach A panel data analysis approach is utilised to evaluate the influence of various types of infrastructure on economic development in Vietnam over the period 2003–2013. Specifically, this study uses spatial night-light data taken from NASA’s satellite as an alternative proxy for economic development. Findings The analyses indicate that infrastructure enhancement consistently exerts a positive effect on the economy. Upon further investigations of the channels through which infrastructure could affect economic development, the empirical results reveal, in addition, that the developmental impact of infrastructure tends to be stronger if more rigorous government supervision and oversight of the construction and delivery of infrastructure projects are in place to ensure the efficiency and effectiveness of the private sector’s investment in infrastructure facilities. Finally, the interaction of infrastructure with human capital appears to exert an especially important influence upon economic development. Originality/value This study contributes to the debate over whether infrastructure has a real developmental effect in developing countries. Some important policy implications are then drawn from the empirical analysis. As a result, this paper will be of value to other researchers, economists, business leaders and policy-makers attempting to understand the economic benefit of infrastructure development.

The Spatial Pattern and Influencing Factors of China’s Nighttime Economy Utilizing POI and Remote Sensing Data

“…The NTE interacts with regional infrastructure; government supervision and management stimulate the effectiveness of private sector investment in infrastructure and increase the impact of building it on the economy [53]. The building of infrastructure is a decisive factor in regional livability, and urban transport infrastructure has a significant positive impact on nighttime economic growth [54][55][56].…”

Evaluasi Terhadap Kawasan Perbatasan Darat Indonesia Melalui Lima Dimensi Indeks Pembangunan

“…Faktor penting kedua adalah investasi yang terus menerus di kawasan perbatasan (Uttama, 2014). Investasi mengandung arti setiap kegiatan yang meningkatkan kemampuan ekonomi untuk memproduksi output dimasa yang akan datang, tidak hanya berupa penambahan persediaan fisik modal tetapi juga menyangkut investasi sumberdaya manusia (Luu & Nguyen, 2019). Investasi merupakan faktor yang esensial dalam proses pertumbuhan ekonomi, adanya investasi akan mendorong peningkatan modal pertenaga kerja (per kapita) (Kumari & Devadas, 2017).…”

Integrating Street Views, Satellite Imageries and Remote Sensing Data Into Economics and the Social Sciences

“…Bickenbach et al, 2016; Bluhm & Krause, 2022; Cauwels et al, 2014; Chanda & Cook, 2022; Chen et al, 2022; Elvidge et al, 2012; Henderson et al, 2012; Hu & Yao, 2022; Liu et al, 2021; McCallum et al, 2022; McCord & Rodriguez-Heredia, 2022; Pérez-Sindín et al, 2021; Weidmann & Schutte, 2017; Xu et al, 2021; Yeh et al, 2020 used nighttime light estimations to construct a wealth index to measure economic well-being and provide a decision-making basis for areas facing impoverishment. Similarly, Gibson et al (2020), Gibson et al (2021), Goldblatt et al (2020), Luu et al (2019), Maldonado (2022), Mellander et al (2015) and Proville et al (2017) explored the relationship between nighttime lights and economic activity, finding that differences in lights intensity relate to variations in economic activity. Dasgupta (2022) used nighttime lights, electricity usage and precipitation to predict the short-term impact of economic shocks during the outbreak of COVID-19.…”