Developing countries have witnessed a rise in infrastructure spending over the past decades; however, infrastructure spending in most developed countries, particularly the US, continues to decline. As a result, in 2021, the US Congress passed a Bipartisan Infrastructure Bill, which invests $1 trillion in the country’s infrastructure every year. Using the principal component analysis and VAR estimation, we analyzed the impact of infrastructure (transportation and water, railway networks, aviation, energy, and fixed telephone lines) on economic growth in the US. Our findings show that infrastructure spending positively and significantly impacted economic growth. Additionally, the impulse response analysis shows that shocks to infrastructure spending had positive and persistent effects on economic growth. Our results suggest that infrastructure investment spurs economic growth. Based on our findings, sustained public spending on transport and water, railway networks, aviation, energy, and fixed telephone lines infrastructure by the US government will positively impact economic growth in the country. The study also suggests that policies that promote infrastructure spending, such as the Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) passed by the US Congress, should be enhanced to boost economic growth in the US.
This paper contributes to a long-standing debate in development practice: under what conditions can externally established participatory groups engage in the collective management of services beyond the life of a project? Using 10 years of panel data on water point functionality from Indonesia’s rural water program, the Program for Community-Based Water Supply and Sanitation, the paper explored the determinants of subnational variation in infrastructure sustainability. It then investigated positive and negative deviance cases to answer why some communities successfully engaged in system management despite being located in difficult conditions as per quantitative findings and vice versa. The findings show that differences in the implementation of community participation, driven by local social relations between frontline service providers, that is, village authorities and water user groups, explain sustainable management. This initial condition of state-society relations influences how the project is initiated, kicking off negative or positive reinforcing pathways, leading to community collective action or exit. The paper concludes that the relationships between frontline government representatives and community actors are important and are an underexamined aspect of the ability of external projects to generate successful community-led management of public goods.
The purpose of this article is to determine the equitability of airport and university allocations throughout Ethiopian regional states based on the number of airports and institutions per 1 million people. According to the sample, the majority of respondents believed that university allocation in Ethiopia is equitable. In contrast, the majority of respondents who were asked about airports stated that there is an uneven distribution of airports across Ethiopia’s regional states. Hence, both interviewees and focus group discussants stated that there is a lack of equitable distribution of universities and airports across Ethiopia’s regional states. This paper contributes a lesson on how to create a comprehensive set of determining factors for equitable infrastructure allocation. It also provides a methodological improvement for assessing infrastructure equity and other broader implications across Ethiopian regional states.
This paper assesses South Africa’s massive infrastructure drive to revive growth and increase employment. After years of stagnant growth, this is now facing a deep economic crisis, exacerbated by the COVID-19 pandemic. This drive also comes after years of weak infrastructure investment, widening the infrastructure deficit. The plan outlines a R1 trillion investment drive, primarily from the private sector through the Infrastructure Fund over the next 10 years (Government of South Africa, 2020). This paper argues that while infrastructure development in South Africa is much-needed, the emphasis on de-risking for private sector buy-in overshadows the key role the state must play in leading on structurally transforming the economy.
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