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.

To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.

While infrastructure provides necessary public services and is vital for the socio-economic development of a nation, public funds alone cannot finance all infrastructure needs in society, especially after the COVID-19 pandemic, where many countries are facing budget deficits. Although private financing schemes, such as public-private partnerships (PPPs) and land value capture, have been considered intensively, they have yet to produce adequate private capital flows to infrastructure projects due to a lack of incentives for private investors. Against the background, this paper proposes a new financing mechanism in which governments might divert some of the increased tax revenue from the spillover effects of newly constructed infrastructures to fund the private sector through grants or subsidies. The empirical work in Vietnam shows a significant increase in tax revenues after completing two expressways, supporting our idea about spillover effects, which includes small- and medium-sized enterprise (SME) development. This study’s results suggest that spillover effects can bring new opportunities for governments and multilateral development banks (MDBs) to implement infrastructure projects with greater private sector involvement in the region. It also proposes some financial schemes, such as land capture and financing for business startups, including SMEs, to enhance the spillover effects of infrastructure.

Public-Private Partnerships (PPPs) can be an effective way of delivering infrastructure. However, achieving value for money can be difficult if government agencies are not equipped to manage them effectively. Experience from OECD countries shows that the availability of finance is not the main obstacle in delivering infrastructure. Governance—effective decision-making—is the most influential aspect on the quality of an investment, including PPP investments. In 2012, the OECD together with its member countries developed principles to ensure that PPPs deliver value for money transparently and prudently, supported by the right institutional capacities and processes to harness the upside of PPPs without jeopardizing fiscal sustainability. Survey results from OECD countries show that some dimensions of the recommended practices are well applied and past and ongoing reforms show progress. However, other principles have not been well implemented, reflecting the continuing need for improving public governance of PPPs across countries.

Pattaya City is a well-known tourist destination in Thailand, famous for its beautiful beachfront, lively nightlife, and stunning natural scenery. Since 2019, the Eastern Special Development Zone Act, the so-called EEC (Eastern Economic Corridor), has positioned the city as a focal point for Meetings, Incentives, Conferences, and Exhibitions (MICE), boosting its tourism-driven economy. Infrastructure improvements in the region have accelerated urban development over the past decade. However, it is uncertain whether this growth primarily comes from development within existing areas or the expansion of urban boundaries and what direction future growth may take. To investigate this, research using the Cellular Automata-Markov model has been conducted to analyze land use changes and urban growth patterns in Pattaya, using land use data from the Department of Land for 2013 and 2017. The findings suggest an upcoming city expansion along the motorway, indicating that infrastructure improvements could drive rapid urbanization in coastal areas. This urban expansion emphasizes the need for urban management and strategic land use planning in coastal cities.

With the rapid development of digital technology, the digital infrastructure enables the rapid formation, modification and refactoring of digital products through continuous experimentation and implementation, reduces the cost of innovation, and facilitates the implementation of digital innovation. To solve the problem that the technical scope of digital innovation is relatively concentrated and the knowledge flow between the achievements of digital innovation is insufficient, this study investigates the impact of digital infrastructure on organizational digital innovation in China. The cross-sectional study was conducted from November 2023 to March 2024 among 384 employees and managers in the core industries of the digital economy, as well as enterprises in traditional industries in China. Data were collected using closed-ended questionnaires adapted from previous literature. Structural equation modelling (SEM) was employed to analyze the data using SPSS 28 and AMOS 28. The results reveal that both the information infrastructure and the innovation infrastructure have a positive and direct effect on organizational digital innovation in China, as well as an indirect effect through data flows. Converged infrastructure has only an indirect impact on organizational digital innovation through the flow of data.