This exploratory study aims to identify the main characteristics and relationships between artificial intelligence (AI) and broadband development in Asia and the Pacific. Broadband networks are the foundation and prerequisite for the development of AI. But what types of broadband networks would be conducive are not adequately discussed so far. Furthermore, in addition to broadband networks, other factors, such as income level, broadband quality, and investment, are expected to influence the uptake of AI in the region. The findings are synthesized into a set of policy recommendations at the end of the article, which highlights the need for regional cooperation through an initiative, such as the Asia-Pacific Information Superhighway (AP-IS).
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.
Infrastructure development is critical to delivering growth, reducing poverty and addressing broader development goals, as argued in the World Bank Report Transformation through Infrastructure (2012). This paper surveys the literature of the linkages between infrastructure investment and economic growth, discusses the role of infrastructure in the participation of global value chains and in supporting economic upgrades, highlights the challenges faced the least developed countries and provides policy recommendations. It suggests that addressing the bottlenecks in infrastructure is a necessary condition to provide a window of opportunity for an economy to develop following its comparative advantage. With the right conditions, good infrastructure can support an economy, particularly a less developed economy, to reap the benefit through the participation in the global value chains to upgrade the economic structure.
To increase inter-region connectivity, the Indonesian government initiated infrastructure projects such as toll roads, airport, highways, as well as agriculture ones throughout the countries. One of the big projects in road infrastructure was the Cikampek–Palimanan (Cipali) toll road in West Java with a budget of more than USD1 billion which started to operate in July 2015. This paper is aimed to evaluate the impact of the toll road on accessibilities, trades, and investments in the region it traverses. To carry out the analysis, we used qualitative approach, difference-in-difference approach, and ANOVA, utilizing three kinds of data. The first data is collected from a survey of 331 small-medium enterprises (SMEs) in the logistics and the hotel and restaurant industries. The second one is bank loan data sourced from Bank Indonesia, while the third one is investment data from Investment Coordinating Board of Indonesia (BKPM).
After two years of its operation, Cipali toll road has increased accessibility, mobility, trade, and investment in the region it traverses. The travel time was reduced by 39%, while the cargo volume of the local businesses increased by 30% to 40%. These led to an improvement of wholesale trade volume in almost all regencies. However, SMEs in the hotel and restaurant industry along the traditional northern coastal highway in Subang, Indramayu, and Brebes experienced a decline due to the traffic shifting. Meanwhile, investments from national companies especially those of labor-intensive manufacturing industries flowed significantly especially to Subang and Majalengka, which reflected a “sorting effect”. However, investments from local and foreign businesses did not increase significantly yet after 2.5 years of toll operation.
To reap the benefit from the presence of Cipali toll road, the local governments should improve the ease of doing business to attract investments that boost employment in return. In addition, given a better accessibility from Greater Jakarta and a large number of potential visitors passing through the toll road, local businesses in the trade sector would benefit if they could promote the local attractions such as in tourism activities supported by the local government. The latter strategy should also be implemented by the local governments and local businesses in the northern coastal traditional route to minimize the negative impact of the toll road due to the traffic shifting. This strategy should be strengthened through increasing connectivity from the toll exits to local business areas and through increasing the ease of doing business.
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