Transport infrastructure investment is a cornerstone of growth-promoting strategies around the world. However, investment in new infrastructure is not always conducive to stronger economic performance. This column argues that the lack of positive economic returns may be due to institutional failures mitigating the growth effects of public capital expenditures. In contexts marked by weak and inefficient governments and widespread corruption, different types of road investments yield low or no economic returns.
Riccardo Crescenzi, Marco Di Cataldo, Andrés Rodríguez-Pose, 11 April 2017
Nishith Prakash, Marc Rockmore, Yogesh Uppal, 17 December 2015
India is electing more and more politicians that are, or have been, accused of criminal activity. This column asks whether accused – and potentially corrupt – politicians influence economic activity by focusing on data from road construction, which is often tied to corruption. The evidence tentatively suggests that caste-based and patronage politics favours lower quality politicians, who in turn deliver benefits to specific groups. This generally leads to lower aggregate growth.
Ejaz Ghani, Arti Grover Goswami, William Kerr, 05 February 2013
Investment in transport plays an important role in a country’s economic development. This column assesses Indian industries that are moving out of the congested big cities in search of cheaper land and buildings, facilitated by major highways. The Golden Quadrilateral highway project -- a huge, country-wide highway building project connecting four major Indian cities -- significantly influences the success of industries’ exodus from the big cities. It is clear that although highway investments are expensive, the costs of not investing may be too high.