Over the past decade, Ontario has seen a renewal in efforts to stimulate economic growth by investing in infrastructures. In this paper, we analyze the impact of public infrastructure investment on economic performance in this province. We use a multivariate dynamic time series methodological approach, based on the use of vector autoregressive models to estimate the elasticities and marginal products of six different types of public infrastructure assets on private investment, employment and output. We find that all types of public investment crowd in private investment while investment in highways, roads, and bridges crowds out employment. We also find that all types of public investment, with the exception of highways, roads and bridges, have a positive effect on output. The relatively large range of results estimated for the impact of each of the different public infrastructure types suggests that a targeted approach to the design of infrastructure investment policy is required. Infrastructure investment in transit systems and health facilities display the highest returns for output and the largest effects on employment and labor productivity. In terms of the nature of the empirical results presented here it would be important to highlight the fact that investments in health infrastructures as well as investments in education infrastructures are of great relevance. This is a pattern consistent with the mounting international evidence on the importance of human capital for long term economic performance.

The provision of infrastructure and related services in developing Asia via public–private partnership (PPP) increased rapidly during the late 1990s. Theoretical arguments support the potential economic benefits of PPPs, but empirical evidence is thin. This paper develops a framework identifying channels through which economic gains can be derived from PPP arrangement. The framework helps derive an empirically tractable specification that examines how PPPs affect the aggregate economy. Empirical results suggest that increasing the ratio of PPP investment to GDP improves access to and quality of infrastructure services, and economic growth will potentially be higher. But this optimism is conditional, especially on the region’s efforts to further upgrade its technical and institutional capacity to handle complex PPP contracts.

The China-Pakistan Economic Corridor (CPEC) has been one of the most prominent components of the Belt and Road Initiative (BRI). Most of the discussion on CPEC has centered around the macroeconomic effects on the economy. However, research on the fine details of CPEC’s financing structure has not been conducted. This paper aims to fill the gap by providing a detailed description of the financing of CPEC and how the money maps on to different sectors of the Pakistani economy. We also discuss some macroeconomic concerns and ways to mitigate these risks.

Some developmental projects are created by people-private partnerships (PPP), particularly where recovery is acquirable by levying the users. Such PPPs are successful for construction of roads, bridges, running toilet facilities and conveyance facility in mode of use and pay. Likewise, public-scientist partnerships (PSPs) will be successful, where monitored impacts can be used to derive benefit. But such example cases are not so popular in utilizing new research results and derive benefits from natural resources and enhance productivity. There is a demand for similar partnership projects in research area. In this study modality of the PSP to create boost engine for natural resource conservation and bring economic prosperity is established. A novel PSP launch was synthesized on useful food crop viz. finger millet (Elusiane corcona (l)), which has been known since long past, and now is regaining popularity. It was possible to enhance additional annual production of 5.755 million tonnes of finger millet grain, equivalent to additional income of Rs 11,510 crores. Against this the scientist partnership share was 0.49x million tonnes grain and economic equivalency of Rs 992 crores, which was just 7–8%, with same level of input in agriculture. Additional benefits were sustainability of production and resources consecration, reduction of greenhouse gas emission (GHGs), particularly nitrous oxide (N₂O), largely emanating from agriculture and responsible for depletion of ozone layer. The finger millet stiff stem will be useable for production of ply-board filling material that will be innovative building material for housing and infrastructure developments and making furniture.

Using a newly-developed data set for Portugal, we analyze the industry-level effects of infrastructure investment. Focusing on the divide between traded and non-traded industries, we find that infrastructure investments have a non-traded bias, as these shift the industry mix towards private and public services. We also find that the industries that benefit the most in relative terms are all non-traded: construction, trade, and real estate, among the private services, and education and health, among the public services. Similarly, emerging trading sectors, such as hospitality and professional services, stand to gain. The positive impacts on traded industries are too small to make a difference. These results highlight that infrastructure-based strategies are not neutral in terms of the industry mix. Moreover, with most of the benefits accruing to non-traded industries, such a development model that is heavily based on domestic demand may be unsustainable in light of Portugal’s current foreign account position. 

This paper argues for a novel approach to financing infrastructure needs in Arab countries. It first describes the context of rising public debt in the region, contrasting it with the vast infrastructure needs. It then discusses the challenges in meeting these needs with traditional financing. The paper then makes the case for maximizing finance for development by using public-private partnerships and presents a few successful examples in Arab countries. Finally, the paper explores the way forward and concludes on the need for strong state capacity and integrity to promote the “maximizing finance for development” approach.