Enhancing regional well-being: An assessment of how infrastructure investments affect gross territorial product

Thowayeb H. Hassan, Anopchenko Tatiana, Tatiana Palei, Pavel Afonin, Hassan Marzok Elsayed Mahmoud, Amany E. Salem, Muhannad Mohammed Alfehaid, Ahmed M. Abou Agiza

Article ID: 7865
Vol 8, Issue 11, 2024

VIEWS - 29 (Abstract) 19 (PDF)

Abstract


The role of infrastructure in promoting regional well-being has gained significant attention. Infrastructure is critical in integrating the regional economy, multiplying economic development, and improving quality of life. Effective decision-making is crucial to maximize the return on these capital investments. This study assesses infrastructure investments’ short-term and long-term impacts. Short-term efficiency is evaluated through the multiplier effect on other sectors, while long-term efficiency focuses on the influence on economic growth. A polynomial model is constructed using regression analysis based on investments in highway construction projects and the corresponding dynamics of gross territorial product in surrounding areas. This model explains the nature of the multiplier impact of transport infrastructure investments. This study significantly contributes to understanding how infrastructure investments can be strategically targeted to enhance economic growth and regional well-being, providing valuable insights for researchers, policymakers, and professionals in economics, urban planning, and infrastructure development.

Keywords


infrastructure investment; regional well-being; multiplier effect; gross territorial product; polynomial model; transport infrastructure

Full Text:

PDF


References


Almon, S. (1965). The Distributed Lag Between Capital Appropriations and Expenditures. Econometrica, 33(1), 178. https://doi.org/10.2307/1911894

Alonazi, B. S., Hassan, T. H., Abdelmoaty, M. A., et al. (2023). Tourist Behavior in the Cruise Industry Post-COVID-19: An Examination of Service Quality, Corporate Image, and Intentions to Pay and Revisit. Sustainability, 15(11), 8623. https://doi.org/10.3390/su15118623

Bajo-Rubio, O., & Sosvilla-Rivero, S. (1994). An Econometric Analysis of Foreign Direct Investment in Spain, 1964-1989. Southern Economic Journal, 61(1), 104. https://doi.org/10.2307/1060133

Blom, C. M., & Guthrie, P. M. (2017). Towards long-term infrastructure system performance. In: Proceedings of the Institution of Civil Engineers-Engineering Sustainability, 170(3), 157–168. https://doi.org/10.1680/jensu.15.00035

Cheng, M. L., & Han, Y. (2013). A modified Cobb-Douglas production function model and its application. IMA Journal of Management Mathematics, 25(3), 353–365. https://doi.org/10.1093/imaman/dpt012

Collier, P., Kirchberger, M., & Söderbom, M. (2015). The Cost of Road Infrastructure in Low- and Middle-Income Countries. The World Bank Economic Review, 30(3), 522–548. https://doi.org/10.1093/wber/lhv037

Crescenzi, R., & Rodríguez‐Pose, A. (2012). Infrastructure and regional growth in the European Union. Papers in Regional Science, 91(3), 487–513. https://doi.org/10.1111/j.1435-5957.2012.00439.x

Daradkeh, F. M., Hassan, T. H., Palei, T., et al. (2023). Enhancing Digital Presence for Maximizing Customer Value in Fast-Food Restaurants. Sustainability, 15(7), 5690. https://doi.org/10.3390/su15075690

Du, X., Zhang, H., & Han, Y. (2022). How Does New Infrastructure Investment Affect Economic Growth Quality? Empirical Evidence from China. Sustainability, 14(6), 3511. https://doi.org/10.3390/su14063511

Giussani, B., & Tsolacos, S. (1994). Investment in industrial buildings: Modelling the determinants of new orders. Journal of Property Research, 11(1), 1–15. https://doi.org/10.1080/09599919408724098

Helal, M. Y. I. (2023). The impact of fast-food restaurant customers’ digital transformation on perceived value and well-being. Journal of Hospitality and Tourism Technology, 14(5), 893–907. https://doi.org/10.1108/jhtt-05-2022-0141

Hooper, E., Peters, S., & Pintus, P. A. (2020). The impact of infrastructure investments on income inequality: Evidence from US states. Economics of Transition and Institutional Change, 29(2), 227–256. Portico. https://doi.org/10.1111/ecot.12266

Lu, D. (2024). Regional Development and Its Spatial Structure. Springer Nature Singapore. https://doi.org/10.1007/978-981-99-7683-6

Lu, H., Deng, Z. (2012). Positive analysis on the relationship between fixed assets investment and business income of the telecommunication. In: Proceedings of the 2012 International Conference on Information Management, Innovation Management and Industrial Engineering. pp. 26–30. https://doi.org/10.1109/iciii.2012.6339769

Lütkepohl, H. (2013). Vector autoregressive models. In: Handbook of Research Methods and Applications in Empirical Macroeconomics. Elgaronline. https://doi.org/10.4337/9780857931023.00012

Magazzino, C., & Mele, M. (2021). On the relationship between transportation infrastructure and economic development in China. Research in Transportation Economics, 88, 100947. https://doi.org/10.1016/j.retrec.2020.100947

Malecki, E. J. (2017). Economic competitiveness and regional development dynamics. In: Handbook of Regions and Competitiveness. Elgaronline. https://doi.org/10.4337/9781783475018.00011

Moljevic, S. (2016). Influence of quality infrastructure on regional development. International Journal for Quality Research, 10(2), 433.

Nevondo, T. T., Chaminuka, P., Nhundu, K., et al. (2019). Economic returns from investment in beef cattle improvement research in South Africa. Agrekon, 58(1), 113–124. https://doi.org/10.1080/03031853.2019.1566080

Okolo, C. V., Edeme, R. K., & Emmanuel, C. (2018). Economic Analysis of Capital Expenditure and Infrastructural Development in Nigeria. Journal of Infrastructure Development, 10(1–2), 52–62. https://doi.org/10.1177/0974930618809173

Palei, T., Gurianova, E., Mechtcheriakova, S., et al. (2022). Economic Growth and Stimulating Private Business Investment in Infrastructure by Assessing Its Need. International Journal of Criminology and Sociology, 9, 2521–2526. https://doi.org/10.6000/1929-4409.2020.09.307

Pereira, A. M., & Pereira, R. M. (2019). How Does Infrastructure Investment Affect Macroeconomic Performance? Evidence from Portugal. Journal of Infrastructure Development, 11(1–2), 14–40. https://doi.org/10.1177/0974930619872083

Pereira, A. M., & Roca-Sagalés, O. (2003). Spillover effects of public capital formation: evidence from the Spanish regions. Journal of Urban Economics, 53(2), 238-256.

Prus, P., & Sikora, M. (2021). The Impact of Transport Infrastructure on the Sustainable Development of the Region—Case Study. Agriculture, 11(4), 279. https://doi.org/10.3390/agriculture11040279

Queiroz, C. A. V., & Gautam, S. (1992). Road infrastructure and economic development: some diagnostic indicators. World Bank Publications.

Rodríguez-Sanz, Á., & Rubio Andrada, L. (2023). Cost–Benefit Analysis of Investments in Air Traffic Management Infrastructures: A Behavioral Economics Approach. Aerospace, 10(4), 383. https://doi.org/10.3390/aerospace10040383

Roibás, D., & Baños, J. (2010). The Impact of Infraestructures in Provincial Production: Assesing its Dynamic Impact. University of Oviedo.

Rokicki, B., & Stępniak, M. (2018). Major transport infrastructure investment and regional economic development – An accessibility-based approach. Journal of Transport Geography, 72, 36–49. https://doi.org/10.1016/j.jtrangeo.2018.08.010

Rose, M. H. (2003). Reframing American Highway Politics, 1956-1995. Journal of Planning History, 2(3), 212–236. https://doi.org/10.1177/1538513203255260

Saviotti, P.-P., Pyka¤, A., & Jun, B. (2020). Diversification, structural change, and economic development. Journal of Evolutionary Economics, 30(5), 1301–1335. https://doi.org/10.1007/s00191-020-00672-w

Schwarz, G. (1978). Estimating the Dimension of a Model. The Annals of Statistics, 6(2). https://doi.org/10.1214/aos/1176344136

Sebayang, A. F., & Sebayang, L. K. (2020). Infrastructure investment and its impact to regional development. Economics Development Analysis Journal, 9(3), 269-280.

Srinivasu, B., & Rao, P. S. (2013). Infrastructure development and economic growth: Prospects and perspective. Journal of business management and social sciences research, 2(1), 81-91.

Xueliang, Z. (2013). Has Transport Infrastructure Promoted Regional Economic Growth?—With an Analysis of the Spatial Spillover Effects of Transport Infrastructure. Social Sciences in China, 34(2), 24–47. https://doi.org/10.1080/02529203.2013.787222

Yingfei, Y., Mengze, Z., Zeyu, L., et al. (2022). Green logistics performance and infrastructure on service trade and environment-Measuring firm’s performance and service quality. Journal of King Saud University - Science, 34(1), 101683. https://doi.org/10.1016/j.jksus.2021.101683

Zhou, J., Raza, A., & Sui, H. (2021). Infrastructure investment and economic growth quality: empirical analysis of China’s regional development. Applied Economics, 53(23), 2615–2630. https://doi.org/10.1080/00036846.2020.1863325

Zhu, H., Chen, S., Irfan, M., et al. (2023). Exploring the role of the belt and road initiative in promoting sustainable and inclusive development. Sustainable Development, 32(1), 712–723. Portico. https://doi.org/10.1002/sd.2705




DOI: https://doi.org/10.24294/jipd.v8i11.7865

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Authors

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.